Ghana, Switzerland double taxation agreement comes into force

The agreement between Ghana and Switzerland to prevent double taxation of citizens of the two countries comes into force effective January 1, 2010, a press statement from the Swiss Embassy in Ghana copied to ghanabusinessnews.com has said.

The agreement which was ratified by the parliaments of the two countries in 2009 was signed in July 2008.

According to the statement, the agreement will protect investors from the two countries from double taxation on income, wealth and capital gains.

Specifically, Swiss direct investment in Ghana and Ghanaian direct investments in Switzerland will be encouraged and withholding tax on dividends, interest, licence royalties and service fees will be limited, it added.

Citing statistics from the Ghana Investment Promotion Centre (GIPC), the statement said as at the end of June 2009 Switzerland ranked 14 among foreign investors in Ghana.

“This agreement will therefore promote favourable bilateral economic relations and further encourage Swiss direct investment in Ghana,” the statement said.

By Emmanuel K. Dogbevi