Zim, China agree to curb double taxation | The Chronicle
ZIMBABWE and China have signed an agreement to curb double taxation and prevent fiscal evasion with respect to taxes on income between the two countries. Double taxation is the levying of tax by two or more jurisdictions on the same declared income, asset and financial transaction.
Basically, a country will pay the lower of the two taxes to one district and then pay the difference to the higher taxed district. Zimbabwe Revenue Authority commissioner general Gershem Pasi said during a recent meeting with a Chinese delegation that the initialisation of the double taxation agreement would enhance business between the two countries.
He expressed his desire to see improved cooperation between Zimra and China’s State Administration of Tax.
“We’re happy that … we’re finalising the double taxation agreement. It had taken us a long time as we negotiated, but we’re happy that we’ve come to be where we’re today,” said Pasi while addressing a recent meeting with a Chinese delegation from the State Administration of Tax.
The meeting, which was held in Harare, was aimed at finalising the double taxation agreement between the two countries. “We foresee improved trade and cooperation between our countries as a result of the signing of this agreement,” he said.
Chinese commissioner general, Li Jun, who led the delegation, expressed his appreciation at the work done in ensuring the finalisation of the double taxation agreement.
“In Chinese, we’ve a proverb which says ‘it takes a long time to brew good wine.’ So it has taken us a long time to come up with this agreement which I’m sure is good for us all,” he said.
The Chinese delegation comprised the Deputy Principal Director of International Taxation, Wang Xiaoyue; Secretary to the Commissioner General, Chen Jun Feng; Head of International Taxation; Xiong Yan; and officials from the Chinese embassy.
Zimbabwe and China enjoy cordial relations dating back during the liberation struggle. China, through a number of agencies, is playing a central role in the modernisation thrust that the authority has embarked on.
