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 Agreements (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

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?

  1. Might be date agreement signed, or date news released.
  2. 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

  • 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.