Of the 90 tax treaties in force, 42 are in Europe, 23 in Asia, 13 in Africa, 4 in the Middle East, two in South America, two in Central America, two in Oceania and one in North America and one in North America and the Caribbean. The treaty with Russia is a state agreement on investment income tax, which means that it applies only to the profits of dividends, interest and capital gains of governments and their financial or investment institutions. Israel and the United Arab Emirates signed a standardization agreement on 15 September that established formal diplomatic relations. Since mid-August, several trade agreements have been signed between the two countries, in which they have agreed on a normalization of relations. The list of conventions aimed at avoiding double taxation includes: Albania, Algeria, Armenia, Austria, Azerbaijan, Andorra, Belarus, Benin, Belize, Bangladesh, Belarus, 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, Liechtenstein, Lithuania, Malaysia, , Mongolia, Morocco, Mauritius, Mauritania, Mozambique, Mexico, Netherlands, New Zealand, Nigeria, Pakistan, Philippines, Poland, Portugal, Palestine, Panama, Romania, Russia, Seychelles, Singapore, Senegal, Switzerland, Spain, Serbia, Slovenia, Slovakia, Sri Lanka, South Korea, Sudan, Syria, Tajikistan, Thailand, Turkmenistan, Tunisia, Turkey, New Zealand, Ukraine, Uzbekistan, Uruguay, Uganda, Vietnam. Participation in an international tax framework offers significant guarantees and benefits for businesses and expatriates in the United Arab Emirates. Double taxation agreements assign tax duties and ensure that individuals and businesses are taxed only once. They clarify how certain types of income, such as dividends, property income and pensions, should be taxed and establish non-discrimination rules to avoid differences in treatment based on factors such as nationality or residence. “Because the UAE doesn`t have a lot of taxes, companies in the United Arab Emirates have more advantages [of double taxation agreements],” says Shiraz Khan, who heads tax practices at the law firm Al Tamimi in the region. “This may mean that they are subject to a lower withholding rate, and that is only because of the terms of the contract.” “The Ministry of Finance is very keen to expand its network of international relations by signing agreements to avoid double taxation and agreements to protect and promote investment,” Khoori said. For companies, agreements can result in waivers and reduced withholding rates on dividends, interest and royalties.
If a company in the United Arab Emirates has international shareholders, “it is not subject to the tax of the shareholders` jurisdiction,” Azhari said. “One of the important things that companies keep telling us is that it`s not so much the tax rate that matters, but the security and stability of the environment in which they`re going to work,” says Grace Perez-Navarro, deputy director of the OECD`s Centre for Tax Policy and Management. “This vast network of contracts contributes to this.” The UAE has 123 double taxation agreements in force or pending, expatriates and businesses benefit from the first double taxation agreement 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.