Qatar and Uruguay signed a broad agreement on the elimination of the double taxation of income and prevention of tax evasion and tax avoidance in a major stride towards strengthening bilateral economic relations.
The agreement demonstrates the desire of both countries to enhance their financial collaboration, to promote transnational investments, and to establish long-term economic partnerships.
Therefore, the deal was signed in Doha by Minister of Finance HE Ali bin Ahmed Al Kuwari and Minister of Foreign Affairs of the Republic of Uruguay HE Mario Lopetegui.
The new agreement that has been signed aims at eliminating the concept of double taxation and also the fiscal barriers that may be a hindrance to the flow of capital between the two nations.
It also promotes trade flows, foreign direct investment, and makes business cooperation conditions very conducive by creating a clear set of taxation regulations and a stable legal and financial environment.
Both nations’ officials confirmed that the agreement is going to promote the development of the bilateral economic activities, allowing companies and investors to work much more clearly, predictably, and fairly.
One of the most important aspects of the agreement is its focus on transparency and an exchange of confirmed financial data between the competent authorities of Qatar and Uruguay.
Such a move is consistent with best global practice in fighting tax avoidance and enhancing good governance in international economic transactions.
The agreement guarantees that both parties feel obligated to apply the best standards in the world, thus reinstating trust and creating a safe environment to conduct financial transactions.
This drive also undergoes a set of technical provisions that encompass different forms of income and economic activities. These regulations are applicable to sectors such as international transport, joint enterprises, and associated projects. They also regulate the taxation on dividends, interest, royalties, also other cross-border payments.
Through the clearance of these tax-related issues, the agreement would be in a position to promote capital mobility, ease financial loads to investors, and support economic stability and sustainable growth in both nations.
The fact that this agreement was signed demonstrates that Qatar continues to make the modernization of its financial and tax systems, foreign investment, and economic cooperation with friendly countries.
It also represents the interest of Uruguay towards establishing closer relations with the Gulf economies and the promotion of more extensive trade and investment projects.
Having reached this milestone, Qatar and Uruguay enter a new era of bilateral relations, which offers beneficial prospects of mutual benefit, growth in the economic turnover, and enhancement of strategic collaboration.
