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Wednesday 08 February 2012 (UAE)
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UAE double taxation treaties and agreements
Information about UAE double taxation treaties and agreements, and a list of countries that have signed double tax treaties with the UAE.
- First Double Taxation Avoidance Agreement (DTAA) was signed between the UAE and France in 1989 according to WAM news reports, but there was a limited DTAA signed btween India and UAE before that, covering air travel, and there was an agreement signed in 1975 between the Arab Council of Economic Unity according to an Al Tamimi publication on Tax in the UAE.
- As of 19 July 2010, the UAE has 52 DTAAs including 9 with Arab countries. The UAE Ministry of Finance (MOF) has also initialed another 15 agreements.
- As of 24 November 2008, the UAE had DTAAs with 47 countries.
UAE double taxation treaties - what they mean
Agreements are signed between countries to avoid double taxation for reasons which might include the following
- Individuals are not paying income tax to two governments on income earned in one country.
- Individuals are not paying income tax on investments to more than one government.
- Reduction or elimination of taxes paid on dividends and tax-exempt deposits.
- Exemptions from capital gains taxes (CGT)
- Agreements can be intended to boost bilateral economic relations.
- Government investment in another country can take advantage of tax breaks generated by tax agreements.
- Attract foreign investment and capital inflows to the UAE.
- Exemption of freight taxes for national airlines and shipping companies.
List of countries that have double tax treaties with the UAE, or are under consideration
| Country | Agreement or News Date¹ |
Status | Comments² |
|---|---|---|---|
| Algeria | DTAA? | ||
| Armenia | DTAA? | ||
| Austria | 22 September 2003 | DTAA signed | |
| Azerbaijan | 30 October 2006 | Double tax negotiations planned | |
| Bangladesh | 04 November 2009 | Draft agreement signed | |
| Belarus | DTAA? | ||
| Belgium | 29 June 1997 | DTAA signed | |
| Bosnia & Herzegovina | 21 January 2004 | Agreement initialled covering tax on investments | |
| Brazil | 07 December 2003 | Agreement to negotiate a DTAA | |
| Bulgaria | 26 June 2007 | ||
| Canada | 10 June 2002 | DTAA signed covering taxes on income and capital | |
| Chile | 15 October 2009 | DTAA suggested by UAE (WAM report). Unknown if under negotiation. | |
| China | 19 June 1994 | DTAA signed covering income but not capital? | |
| Colombia | 18 October 2009 | DTAA suggested by UAE (WAM report). Unknown if any negotiations in progress. | |
| Czech Republic | DTAA? | ||
| Egypt | DTAA? | ||
| Finland | 27 February 1997 | DTAA signed | |
| France | 29 November 1989 | DTAA signed for double tax avoidance on income | |
| Germany | 31 March 1996 | DTAA signed covering double tax avoidance on income and capital | |
| Germany | 1995 | Talks on renewal of DTAA in June 2006 | |
| Greece | 18 January 2010 | Avoid double taxation | |
| Greece | 04 June 2008 | Draft agreement to avoid tax on aviation business | |
| Hong Kong | 19 July 2010 | Initial DTAA on commodities and services signed | |
| India | 20 April 2007 | DTAA amended so UAE residents pay CGT on short term investments | |
| India | 31 August 1993 | DTAA signed for double taxation avoidance on income and capital | |
| India | 29 August 1989 | DTAA signed covering income from air transport between UAE and India | |
| Indonesia | 30 June 1996 | DTAA signed covering income, but not capital? | |
| Italy | 04 December 1995 | DTAA signed covering income but not capital? | |
| Japan | 27 October 2008 | Third round of talks on double tax concluded | |
| Japan | 21 October 2007 | Third round of talks to avoid double taxation, held in Tokyo | |
| Japan | 28 June 2004 | DTAA signed covering air and sea freight | |
| Jordan | 13 June 2005 | DTAA signed | |
| Kenya | 21 November 2011 | DTAA signed | |
| Korea | DTAA? | ||
| Lebanon | 15 November 1998 | DTAA signed, on income only, not capital? | |
| Libya | 10 June 2010 | Initial agreement signed after 2nd round of talks to prevent double taxation | |
| Luxembourg | 20 November 2005 | DTAA signed. Ratified in May 2009, effective 01 January 2010? | |
| Malaysia | 30 June 1996 | DTAA signed covering tax avoidance on income and capital | |
| Malta | 13 March 2006 | DTAA signed | |
| Mauritius | DTAA? | ||
| Mongolia | DTAA? | ||
| Morocco | 29 September 1999 | DTAA signed | |
| Mozambique | DTAA? | ||
| Netherlands | 02 June 2010 | DTAA takes effect covering tax on dividend payments | |
| Netherlands | 08 May 2007 | ||
| Netherlands | 27 April 1992 | DTAA signed for double tax avoidance on income and profits from UAE-Holland air travel | |
| Netherlands Antilles | May 2008 | First round of negotiations started? | |
| New Zealand | DTAA? | ||
| Pakistan | 24 January 1994 | DTAA signed for double tax avoidance on income tax | |
| Philippines | 22 September 2003 | DTAA signed | |
| Poland | 24 January 1994 | DTAA signed for double tax avoidance on income tax | |
| Romania | 04 December 1995 | DTAA signed covering capital but not income? | |
| Russia | 30 October 2006 | Double tax negotiations planned | |
| Seychelles | DTAA? | ||
| Singapore | 30 June 1997 | DTAA signed | |
| Singapore | 31 March 1990 | DTAA signed for income from air transport between UAE and Singapore | |
| South Korea | |||
| Spain | 06 March 2006 | DTAA signed | |
| Spain | 01 November 2005 | Agreement initialled, not sealed | |
| Sri Lanka | 31 August 1993 | DTAA for double tax avoidance on income from air transport between UAE and SL | |
| Sudan | 12 April 2002 | Agreement signed to allow tax-free profit repatriation | |
| Switzerland | May 1999 | DTAA signed | |
| Switzerland | 27 April 1992 | DTAA signed for double tax avoidance on income from air travel between both countries | |
| Syria | 28 June 2000 | DTAA signed | |
| Tajikistan | DTAA? | ||
| Thailand | 29 November 2000 | DTAA signed | |
| Tunisia | 27 February 1997 | DTAA signed for double tax avoidance on income and capital | |
| Turkey | DTAA? | ||
| Turkmenistan | 30 November 1999 | DTAA signed | |
| Ukraine | DTAA? | ||
| Uzbekistan | DTAA? | ||
| Venezuela | 07 June 2010 | Agreement signed for double tax avoidance, tax evasion prevention, on income and capital | |
| Vietnam | February 2009 | ||
| Yemen | DTAA? |
- Might be date agreement signed, or date news released.
- If notes say "DTAA signed" it usually means DTAA signed for double tax avoidance and tax evasion prevention on all income and capital sources.
News items related to UAE double taxation agreements
- 21 November 2011 (Kenya) - Double taxation avoidance agreement signed between UAE and Kenya. All UAE national air carriers (Air Arabia, Emirates Airline, Etihad Airways, RAK Airways) exempted from taxes in Kenya. Students, sovereign funds, staff members of airlines, income and capital in both the public and private sectors are also exempted from all taxes. Tax on dividends of the private sector reduced by Kenya from 20% to 5%.
- 19 July 2010 (Hong Kong) - an initial double taxation avoidance agreement on commodities and services between the UAE and Hong Kong signed by HE Younis Haji Al Khoori, Director General of UAE Ministry of Finance (MOF press release).
- 10 June 2010 (Libya) - UAE Ministry of Finance signed an initial agreement with Libya to facilitate capital and investment transfer between the two countries, and protect taxpayers against both direct and indirect double taxation by collecting tax in the country of domicile of the investor or business. Agreement was signed at the end of the second round of double tax avoidance negotiations.
- 07 June 2010 (Venezuela) - UAE Ministry of Finance signed an agreement with Venezuela covering taxes on income and capital, taxes on investments in public and private sectors, and simplifies financial and tax benefits of air and sea carriers. It is reportedly the first double tax agreement between the UAE and a Latin American country (press release 07 June 2010).
- 02 June 2010 (The Netherlands / Holland) - Treaty for the Avoidance of Double Taxation takes effect. Includes 0% Dutch withholding tax rate for dividends paid to government-owned UAE entities, or a 5% withholding tax for non-government entities (previously 15%) (MOF press release 01 June 2010).
- 04 November 2009 (Bangladesh) - A draft double taxation agreement signed between the UAE Ministry of Finance (MOF) and Bangladesh which exempts government institutes from any tax on any income, reduces tax on private investment from 17.5% to 5%, and a complete taxation exemption on income derived from aviation related activities (WAM).
- 18 October 2009 (Colombia) - The UAE Foreign Minister, Shaikh Abdullah Bin Zayed Al Nahyan, met with the Colombian President, Alvaro Uribe, in Bogota. WAM reported that (referring to Sheikh Abdullah) He called for the signing of a cooperation agreement between the two sides to boost trade through agreement to prevent double-taxation and protect investments.
- 15 October 2009 (Chile) - UAE Minister of Foreign Affairs, Sheikh Abdullah Bin Zayed Al Nahyan, met with President of Chile, Dr Michelle Bachelet, in Santiago. Among issues discussed and conveyance of regards, WAM reported that The UAE Minister of Foreign Affairs underlined the need to sign the Avoiding of Double Taxation and Encourage and Protection of Investment Agreements.
- 04 June 2008 (Greece) - a draft treaty initialled for the avoidance of taxation on air transportation by national carriers of both Greece and the UAE as part of the first round of negotiations. Round two to commence in September 2008 (WAM).
- 27 October 2008 (Japan) - Third round of double taxation avoidance talks between the UAE and Japan concluded. Talks begain in the 1990s, an MOU was signed in 2004 or 2005, further talks in November 2006 and March 2007 (WAM).
- 01 November 2005 (Spain) - a double taxation agreement was initialled between the UAE and Spain, to provide legal framework for promoting investments and benefiting from advanced technology, encourage the flow of capital, and expand the two-way trade volume between the two countries (WAM).
- June 2004 or 2005 (Japan) - an MOU signed so that Japanese and UAE nationals would not be liable for direct, indirect and local government taxes on trade operations related to air and sea freight (WAM).
- 07 December 2003 - a press release after the visit of Brazilian President Luiz Inacio Lula da Silva to Abu Dhabi on 06 and 07 December 2003, said With the same objective, the two Governments agreed to negotiate an Agreement on double taxation exemption.
WAM (Emirates News Agency) is the official UAE news agency.
Last update Friday 23-Dec-2011. Page development 4L 5C.
Related pages
- Tax in UAE - a brief guide for expatriate residents in the UAE
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