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Double Taxation Avoidance Agreement With Ethiopia

The tax is either paid in the country of residence and exempt in the country where the profits are made, or the country where the profits are made deducted the withholding tax as a withholding tax and the taxpayer receives a foreign tax credit in the country of residence attesting that the tax has already been paid. This Convention shall remain in force for an indefinite period, but may be denounced in writing by any of the States Parties within a period of six months. In that case, the Agreement shall expire after 1 January, after the expiry of that six-month period, in respect of revenue from the operation of aircraft in international traffic. Ethiopia uses the accounting method to eliminate double taxation, while the Netherlands may apply the exemption or credit method depending on the nature of the income and the applicable provisions of its national law. The agreement means that entrepreneurs who are nationals of these countries or Ethiopian businessmen exercising their jurisdiction are not required to pay taxes on the same declared income. (a) “Ethiopia” means the territory of Ethiopia and the various islands belonging to Ethiopia and covers the coastal sea and all other adjacent maritime areas, including their seabed and subsoil, over whose resources Ethiopia has or may have sovereign rights in accordance with international law; The agreement is based on the OECD Model Convention on the Prevention of Double Taxation of Income and Capital and was published in the Official Journal of the Cypriot Government on 18 January 2016. f. “Aircraft operation” means an air transport operation of persons, livestock, goods or mail carried out by the owners, least numerous or charterers of aircraft, including the sale of tickets for such transport on behalf of other undertakings and any other activity directly related to such transport. India has signed a double taxation agreement (DBAA) with Ethiopia.

The 2014 Protocol also replaces Article X of the Protocol originally signed by the Treaty, to clarify that the reduced withholding tax rate of 5% applies to dividends as long as the Netherlands applies a total exemption to dividends from participation received by an undertaking of an undertaking established in Ethiopia. . . .

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