The Moroccan Council of Ministers approved the pending income tax treaty with Cape Verde on 18 October 2024.
A tax treaty is a bilateral agreement between two countries designed to address double taxation on both passive and active income earned by each country’s citizens. These treaties typically establish the extent to which a country may tax a taxpayer’s income, capital, estate, or wealth. An income tax treaty is also referred to as a Double Tax Agreement (DTA).
The treaty, signed on 9 May 2023 in Rabat, marks the first agreement of its kind between the two countries. It will come into effect once the instruments of ratification are exchanged.
