BUJUMBURA May 8th (ABP) – The MPs met in plenary session Thursday, May 4, 2023, at the Kigobe hemicycle, to analyze and adopt the bill on the ratification by the Republic of Burundi of the cooperation agreement between the government of Burundi and the government of Turkey, with a view to avoiding double taxation and preventing tax evasion with respect to income taxes, signed on March 10, 2022, in Antalia.
The Minister of Finance, Budget and Economic Planning, Audace Niyonzima, during the explanatory memorandum, reassured that this cooperation between the government of Burundi and the government of Turkey in order to avoid double taxation and to prevent tax evasion in matters of income tax, aims to strengthen their bilateral relations, develop and expand their cooperation framework.
It is also part of promoting their economic relations and above all improving their cooperation in tax matters. Furthermore, he pointed out, this agreement constitutes an appropriate framework for economic cooperation and a basic instrument for trade, with the intention of eliminating double taxation and preventing tax evasion, in relates to taxes, without creating opportunities for non-taxation or reduced taxation through tax evasion or evasion.
It is with that in mind that the Republic of Burundi has set up treaty-shopping mechanisms intended to obtain the relief provided for in this agreement for the indirect benefit of residents of third countries, in order to participate in the promotion, protection and enhancement of the public and private interests of a Nation.
The MPs were able to ask various questions related in particular to other agreements that exist between Burundi and Turkey apart from trade and economic cooperation. Minister Niyonzima replied that there are other agreements, among others in the sector of education where there is an academic collaboration protocol between Hacettepe University of Ankara and the Ministry in charge of Education. , higher education and scientific research, signed on September 9, 2015, inter-State mobility, in the cultural, political and defense fields, etc. They also asked the Minister to explain to them how the two countries will eliminate double taxation, and demonstrated to them by an example, in particular by explaining to them that if the exemption is 5% for example, and that Burundi imposes 30 %, the latter must tax at 30% and then subtract the exempt amount from 5%.