Morocco, Macedonia Sign DTA

by Lorys Charalambous, Tax-News.com, Cyprus

13 May 2010

It has recently emerged that Morocco and Macedonia have signed in Rabat two bilateral agreements designed to avoid double taxation and to encourage and protect investments in both countries.

These agreements were signed by the Secretary of State for Foreign Affairs, Latifa Akharbach, and her Macedonian counterpart, Abdulkader Memedi, during a ceremony presided by Morocco’s Prime Minister Abbas El Fassi and Macedonia’s Prime Minister Nikola Gruevski.

The first agreement, which demonstrates the determination of both countries to promote and strengthen bilateral economic relations, aims to avoid double taxation and to prevent tax evasion in relation to income tax.

It will apply to residents of one or other of the contracting parties and to income tax paid to the other contracting state or political subdivisions or local authorities, depending on the manner in which income tax is paid.

The second agreement is designed to encourage, stimulate and to protect bilateral investments in a bid to increase the economic prosperity of both countries. The agreement will ensure that bilateral investments benefit from a fair and just treatment and from full protection and security.

Commenting on the signing of these agreements, Prime Minister El Fassi declared that the signings mark a prelude to the conclusion of further bilateral agreements in several key areas, notably in economic, technical and cultural areas.

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