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Economic development: two tax treaties signed

23/09/2024
Source : ORISHAS-FINANCE
Categories: Sectors

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Le vendredi 20 septembre 2024 deux conventions fiscales ont été signées en faveur de la Democratic Republic of Congo. The agreement was signed under the protection of the Organization for Economic Cooperation and Development (OECD) in Paris, capital of the French Republic, by the Minister of Finance during an intergovernmental ceremony

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Finance Minister Doudou Fwamba Likunde Li-Botayi announced that “the first tax treaty is devoted to the fight against base erosion and profit transfer (BEPS), aims to combat abusive tax practices by multinationals. The second signature concerns the Tax Liability Rule (TAI) and represents an essential tool for better control of income that is not subject to tax administration.” According to the latter, these signatures mark a significant advance for the Democratic Republic of Congo (DRC) in integrating the country into a dynamic of transparency and international cooperation. Also, the Minister of Finance indicated that every year, the DRC loses significant fiscal resources due to practices of transferring profits to jurisdictions with low or no taxation.

During the ceremony, Doudou Fwamba Likunde Li-Botayi emphasized the importance of these conventions that promote the exchange of information between countries and strengthen the capacities of tax administrations.

Il faut noter que l' OCDE is an intergovernmental organization for studies and economies, whose member countries, most of them developed countries, share a democratic system of government and a market economy. The organization essentially acts as a consultative body.

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