Double tax treaty signed

National, Normal

The National, Friday 31st May 2013

 A DOUBLE taxation treaty between PNG and Indonesia has been signed and awaited approval from the National Executive Council before going to Parliament for ratification, Foreign Minister Rimbink Pato said.

“Double taxation agreements (DTA) serves a number of purposes which include facilitating international trade and investment,” he said in a statement last night.

The main aim of such a treaty was to ensure tax payers were not double taxed, he said.

PNG and Indonesia shared common land and sea borders and had established diplomatic ties in 1976.

“Indonesia is one of PNG’s closest and most important neighbours.”

He said the treaty would complement other agreements already in place between the two countries and further boost cross-border trade. 

Meanwhile, Pato has welcomed the arrival of members of the Melanesian Spearhead Group’s eminent persons group to Port Moresby, led by Fiji ambassador Kaliopate Tavola.

The group are here to conduct a review and report on the viability and strategic importance of the sub-regional body in carrying out its work for the next 25 years within the greater Pacific region.

The review was significant as it would pave the way to MSG’s self-renewal in the face of change taking place in the region, Pato said at a dinner for the group last night.

“We must strive to make MSG a genuine and viable regional organisation that will serve us better in the future.

“We (PNG) are doing  everything possible to lead the region through the development of strong trade and investment initiatives,” Pato said.