Ghana and Denmark have signed a double taxation agreement with respect to taxes on income and capital gains.

The deal will regulate the tax treatment of income or capital gains in situations where the same taxpayer is subject to tax in two states with respect to the same income or capital gains.

In addition, the agreement will also remove impediments that hinder movement of capital and goods will facilitate international trade and the flow of foreign direct investment.

The convention will enter into force on 1 January 2015 when both countries have completed the procedures required by its laws.

Kweku Ricketts-Hagan, deputy minister of finance signed on behalf of Ghana while Mogens Jensen, minister of trade and development cooperation signed for Denmark.

Commenting on the agreement, Ricketts-Hagan said the double taxation agreement between the two countries would further improve the bilateral cooperation between the two countries.
"Despite its middle-income status, Ghana would still require support for its development programmes and projects to bring the people out of poverty," he added.

Ghana already has double taxation agreements with eight other countries, including Britain, France, Italy and Germany.