Tanzania and the Czech Republic Sign Double Taxation Agreement to Boost Investments

On 14th May 2025, Tanzania and the Czech Republic signed an agreement to eliminate double taxation for taxes on income and to prevent tax evasion and avoidance.

The agreement was signed in Dar es Salaam by Tanzania’s Minister for Finance, Dr. Mwigulu Nchemba, and the Ambassador of the Czech Republic to Tanzania, Nicol Adamcová.

The agreement aims to ensure that investors and businesses conducting operations between the two countries are subject to taxation only once, rather than being taxed separately in both jurisdictions.

Speaking after the signing ceremony, Minister Nchemba said the agreement would reduce the risk of double taxation, encourage fair tax policies, and build investor confidence.

He added that data from the Organization for Economic Co-operation and Development (OECD) reveal that countries with effective double taxation agreements attract up to 30% more foreign direct investment compared to those without such agreements.

“With this agreement, we expect increased capital inflows from the Czech Republic into Tanzania, particularly in the automotive and aviation manufacturing sectors, electrical equipment, machinery, and other industrial areas,” he added.

He also emphasized that the expected investment would stimulate growth in Tanzania’s production and industrial sectors, and lead to increased employment opportunities.

On her part, Ambassador Adamcová expressed her satisfaction with the agreement, calling it a milestone in the long-standing and productive relationship between Tanzania and the Czech Republic.

“I’m very pleased we have signed this agreement. It reflects a high level of mutual trust between our countries. Without such trust, we would not have invested the time and effort to reach this milestone,” added Adamcova.

She added that the agreement is a testament to the stability and positive investment environment of both nations and will enable Tanzanian investors to access the Czech market without tax-related barriers.

Tanzania-Czech Republic Bilateral Relations

According to UN COMTRADE data, trade between Tanzania and the Czech Republic reached approximately USD 16.2 million in 2022, mainly in machinery, electrical equipment, transport technologies, and agricultural products.

Czech companies are already active in Tanzania, particularly in the modernization and electrification of railways and the aviation industry.

The newly signed agreement is expected to increase bilateral trade and investment flows between the two countries.