Switzerland and Ethiopia signed a tax treaty on July 29.
The tax treaty allows the Swiss network of double taxation agreements to be expanded into Eastern Africa for the first time. It guarantees legal certainty and a contractual framework, which will have a beneficial effect on the further development of bilateral economic relations.
The tax treaty takes account of the developments associated with the OECD's base erosion and profit shifting project, which aims to combat the erosion of the tax base and profit shifting. In this respect, it contains an anti-abuse clause. The tax treaty also contains an administrative assistance clause in line with the international standard for the exchange of information upon request.