Story by Stanley James, Business Editor
ZIMBABWE is poised for increased investment inflows after signing an agreement with the Swiss Confederation meant to facilitate favourable taxation systems and reduce the cost of doing business.
This comes after Zimbabwe and the Swiss Confederation signed an agreement on the avoidance of double taxation with respect to taxes on income and capital gains and the prevention of tax evasion this Wednesday.
The initiative will remove a tax burden on investors from both countries.
“I am very pleased with this agreement as it is further testimony of our cooperation in fostering bilateral relations. This promotes investment as investors know they will not suffer from double taxation, thereby enhancing confidence in the country while protecting taxpayers’ rights. This serves to the continuous cooperation between Zimbabwe and the Swiss Federation,” Swiss Ambassador to Zimbabwe, Stefan Rey said.
With Swiss Confederation-based companies also increasing their business portfolios in Zimbabwe, the agreement will enable the firms to enjoy a favourable tax regime.
“The agreement is aimed at enhancing tax cooperation and eliminating double taxation of the same income. The move seeks to boost collaboration and exchange of Information, thereby avoiding tax evasion. I also take note that the agreement is based on the principles of equity, fairness and transparency in the jurisdiction of the two countries.
“The ceremony will also pave way for greater cooperation on investment issues for the two economies. The agreement is important in ensuring increased cross-border trading for the two economies,” Minister of Finance, Economic Development and Investment Promotion Professor Mthuli Ncube said.
Zimbabwe has in the past few years experienced improved foreign direct investment inflows from the Swiss Confederation as evidenced by milk processing giant Nestle Limited, which continues to commit more funds to growth.
Other Swiss Confederation-based firms operating in Zimbabwe include Syngenta, Bata Shoe Company, Organic Africa and Schindler, among others.
