Accra, Aug. 6, GNA - Negotiations between Ghana and Germany got underway on Wednesday to halt the payment of double tax on income and capital transfer by businesses from the two countries.

The negotiations which, will stretch over three days would culminate in the signing of an agreement between the two countries with the purpose of promoting the exchange of goods and services and the movement of capital and persons by eliminating international double taxation and prevention of international tax avoidance and tax evasion. Governments of the two countries will need to ratify the conclusions arrived at for it to become effective.

Dr Peter Linder, Ambassador of the Federal Republic of Germany, speaking at the event noted that the purpose of the double taxation agreement is also to promote cooperation between the Tax administrations of the two countries by facilitating the exchange of information. He asked the two delegations to sacrifice the attitude of merely increasing tax, saying that both sides would benefit by facilitating better conditions for free enterprise, free trade and free market economy if they avoid double taxation.

"That would create a legal environment between Ghana and Germany and together with the treaty concerning the Encouragement and Reciprocal Protection of investments, the agreement will close the regulation gap, concerning taxation of companies and persons active in both countries." Mr Yaw Osafo-Maafo, Minister of Finance and Economic Planning said the agreement between the two countries was meant to protect revenue loss of their nationals.

He said the agreement would be put before Cabinet and placed before Parliament for approval.

Ghana is the 8th country in Africa south of the Sahara, in which such an agreement will be in place. Germany has so far concluded 76 Agreements on the avoidance of Double Taxation worldwide and has about 35 agreements in the pipeline.