The United Arab Emirates has an extensive and growing list of double taxation conventions, which currently number more than 60. This network includes contracts with China, France, Germany, India, Indonesia, Italy, Luxembourg, Malaysia, Malta, the Netherlands, Singapore and South Korea. While most Dubai agreements to avoid double taxation are customized, contain provisions concerning: The list of conventions to avoid double taxation includes: Albania, Algeria, Armenia, Austria, Azerbaijan, Andorra, Belarus, Benin, Belize, Bangladesh, Bermuda, Barbados, Bosnia and Herzegovina, Belgium, Mauritius, Canada, Bulgaria, China, Czech Republic, Egypt, Estonia, Ethiopia, Cyprus, Finland, Fiji, Georgia, Gambia, New Guinea, Germany , Greece, Hong Kong, Italy, India, Ireland, Japan, Kazakhstan, Kyrgyzstan, Kenya, Indonesia, Lebanon, Luxembourg, Latvia, Liechtenstein, Lithuania, Malaysia, Macedonia, Malta, Mongolia, Montenegro, Morocco, Mauritius, Mauritania, Mozambique, Mexico, Netherlands, New Zealand, Nigeria, Philippines, Poland, Portugal, Palestine, Panama, Russia, Seychelles, Singapore, Senegal, Switzerland, Spain, Serbia, Slovenia, Slovakia, Sri Lanka, South Korea, South Africa, Sudan, Syria, Tajikistan, Thailand, Turkmenistan, Tunisia, Turkey, Turkey Ukraine, Uzbekistan, Uruguay, Venezuela Vietnam, Yemen. The first agreement to avoid double taxation was signed between the United Arab Emirates and France. Since then, the UAE, including Dubai, has signed 92 double taxation agreements with countries around the world. Double taxation agreements make a territory more attractive by reducing the taxation of profits that are taken away abroad by foreign companies operating there. Dubai is an area with low taxes, so tax treaties apply to especailly Appeaing. Of course, it is the United Arab Emirates that actually signs tax treaties when they automatically apply in the seven Emirates, including Dubai. Therefore, dividends paid by a Company of the United Arab Emirates to a company that has a double taxation agreement with the United Arab Emirates must not be taxable in the hands of the foreign parent company. However, it is advisable to study the very text of the treaties before adopting something on the tax treatment of unredated income streams originating in Dubai. There are other double taxation conventions that have come into force recently. These include the United Kingdom (in force on 25 December 2016), South Africa and Romania (January 1, 2017). Foreign investors should be aware that taxes paid in Dubai may be charged in the foreign company`s country of origin as a credit to the tax paid in the United Arab Emirates, depending on the provisions of the Double Taxation Convention and applicable legislation in the country of origin.
Our Dubai lawyers can provide you with specific information on the provisions of each double taxation agreement if you wish to learn more about the actual agreement between Dubai and your country.