Dar es Salaam — The government has signed a landmark double taxation agreement (DTA) with Türkiye, a strategic move aimed at eliminating double taxation and preventing tax evasion on income.
The agreement, signed in Dar es Salaam on May 4, 2026, is expected to accelerate investment flows and strengthen bilateral trade between the two economies.
The pact was signed by the Minister for Finance, Khamis Mussa Omar, and the Turkish Ambassador, Bekir Gezer.
Minister Omar noted that the deal is the country’s 13th Double Taxation Agreement, underscoring the government’s commitment to building a predictable and investor-friendly tax regime.
He emphasised that such agreements play a critical role in boosting investor confidence by eliminating the risk of the same income being taxed in two jurisdictions.
“Data from the Organisation for Economic Co-operation and Development shows that countries with effective DTAs can attract up to 30 per cent more foreign direct investment,” Omar said.
The signing closes a long-standing gap in the economic relationship between the two nations.
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While the two countries have maintained a bilateral investment treaty (BIT) since 2011, the absence of a DTA has been seen as a constraint on deeper commercial engagement.
Its introduction sends a clear signal to Turkish investors that the East African nation is ready to facilitate and safeguard business operations.
Economic ties
Economic ties between the two countries have been gaining momentum in recent years, particularly following the April 18-21, 2024, state visit by President Samia Suluhu Hassan to Türkiye.
During that visit, six agreements and memoranda of understanding were signed in the fields of education, investment, diaspora, and archives.
Bilateral trade reached approximately US$284 million in 2024, with Türkiye exporting a larger share of goods.
Türkiye’s exports, valued at US$217 million, consist primarily of machinery and heavy industry products.
Conversely, exports to Türkiye remain concentrated in primary commodities, including tobacco, oil seeds, fruits, and aquatic products.
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Officials say the new agreements could help rebalance this trade relationship by encouraging more diversified exports and facilitating Turkish investment in key sectors.
These sectors include manufacturing, agriculture, energy, and tourism, which are central to the country’s industrialisation agenda and long-term economic transformation.
Currently, the nation hosts just over 30 Turkish investment projects valued at around US$300 million.
These investments are mainly concentrated in construction, transport and logistics, trade, and finance.
The amount of investment by Turkish businesspeople is estimated at around US$40 million.
Both countries are now working towards a joint target of increasing trade and investment volumes to US$1 billion.
This goal will be supported by structured mechanisms such as the Joint Commission, which will monitor implementation and identify new priority areas.
Strengthened relations
Türkiye’s Ambassador, Bekir Gezer, described the agreements as a catalyst for strengthening both diplomatic and economic relations.
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He noted that they will provide a more secure and transparent environment for businesses operating across the two markets.
“Our motto is clear: to engage together in fair and mutually beneficial cooperation if we are to achieve greater goals,” Gezer said.
The two nations have maintained formal diplomatic ties since 1963, with cooperation expanding across trade, education, transport, defence, and social development.
The Turkish Embassy in Dar es Salaam was initially opened in October 1979, closed in 1984, and reopened on May 18, 2009.
The embassy in Ankara began its activities in February 2017.
Direct flights by Turkish Airlines between Istanbul and Dar es Salaam started on June 14, 2010, further boosting connectivity.
In the education sector, 394 students were granted higher education scholarships in Türkiye between 2000 and 2024.
Similar treaties
The newly signed DTA joins a growing list of similar treaties the country has established to promote cross-border trade and investment.
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According to the Tanzania Revenue Authority, the country has existing DTAs with South Africa, Sweden, Canada, Denmark, Finland, Norway, India, Italy, and Zambia.
Agreements are also in place with East African Community (EAC) partner states and the United Arab Emirates.
For multinational firms, the elimination of double taxation reduces operational costs, enhances profitability, and improves the predictability of returns.
For Turkish companies, many of which have established a strong presence in construction and manufacturing across Africa, the country offers a strategic gateway into East and Central African markets.
The agreements, therefore, represent more than a technical tax adjustment; they signal a maturing economic partnership.
They reflect a shared ambition to scale up trade and investment flows, positioning both countries to benefit from deeper integration in an increasingly competitive global economy.
While the signing is a positive step, Minister Omar raised concerns over the slow pace of negotiating such agreements.
He noted that the newly signed DTA took more than eight years to conclude, highlighting the need for more efficient diplomatic processes.
