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 17 October 2012, the UAE has signed and adopted 66 double taxation avoidance agreements. The most recent one was signed with Japan.
• As of 26 March 2012, the UAE signed DTAA agreements with 63 countries.
• 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 Sep 2003		DTAA signed
Azerbaijan	30 Oct 2006		Double tax negotiations planned
Bangladesh	04 Nov 2009		Draft agreement signed
Belarus			DTAA?
Belgium	29 Jun 1997		DTAA signed
Bosnia & Herzegovina	21 Jan 2004		Agreement initialled covering tax on investments
Brazil	07 Dec 2003		Agreement to negotiate a DTAA
Bulgaria	26 Jun 2007
Canada	10 Jun 2002		DTAA signed covering taxes on income and capital
Chile	15 Oct 2009		DTAA suggested by UAE (WAM report). Unknown if under negotiation.
China	19 Jun 1994		DTAA signed covering income but not capital?
Colombia	18 Oct 2009		DTAA suggested by UAE (WAM report). Unknown if any negotiations in progress.
Czech Republic			DTAA?
Egypt			DTAA?
Fiji	01 Aug 2012		Initial agreement signed to eliminate double taxation on income.
Finland	27 Feb 1997		DTAA signed
France	29 Nov 1989		DTAA signed for double tax avoidance on income
Germany	31 Mar 1996		DTAA signed covering double tax avoidance on income and capital
Germany	1995		Talks on renewal of DTAA in June 2006
Greece	18 Jan 2010		Avoid double taxation
Greece	04 Jun 2008		Draft agreement to avoid tax on aviation business
Hong Kong	19 Jul 2010		Initial DTAA on commodities and services signed
India	20 Apr 2007		DTAA amended so UAE residents pay CGT on short term investments
India	31 Aug 1993		DTAA signed for double taxation avoidance on income and capital
India	29 Aug 1989		DTAA signed covering income from air transport between UAE and India
Indonesia	30 Jun 1996		DTAA signed covering income, but not capital?
Italy	04 Dec 1995		DTAA signed covering income but not capital?
Japan	17 Oct 2012		Initial agreement to avoid double taxation on income signed
Japan	27 Oct 2008		Third round of talks on double tax concluded
Japan	21 Oct 2007		Third round of talks to avoid double taxation, held in Tokyo
Japan	28 Jun 2004		DTAA signed covering air and sea freight
Jordan	13 Jun 2005		DTAA signed
Kenya	21 Nov 2011		DTAA signed
Korea			DTAA?
Latvia	11 Mar 2012		Agreement signed for Avoidance of Double Taxation on Income
Lebanon	15 Nov 1998		DTAA signed, on income only, not capital?
Libya	10 Jun 2010		Initial agreement signed after 2nd round of talks to prevent double taxation
Luxembourg	20 Nov 2005		DTAA signed. Ratified in May 2009, effective 01 January 2010?
Malaysia	30 Jun 1996		DTAA signed covering tax avoidance on income and capital
Malta	13 Mar 2006		DTAA signed
Mauritius			DTAA?
Mexico	20 Nov 2012		DTAA signed to avoid double taxation on income
Mongolia			DTAA?
Montenegro	26 Mar 2012		DTAA and protection of investments
Morocco	29 Sep 1999		DTAA signed
Mozambique			DTAA?
Netherlands	02 Jun 2010		DTAA takes effect covering tax on dividend payments
Netherlands	08 May 2007
Netherlands	27 Apr 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 Jan 1994		DTAA signed for double tax avoidance on income tax
Philippines	22 Sep 2003		DTAA signed
Poland	24 Jan 1994		DTAA signed for double tax avoidance on income tax
Romania	04 Dec 1995		DTAA signed covering capital but not income?
Russia	30 Oct 2006		Double tax negotiations planned
Seychelles			DTAA?
Singapore	30 Jun 1997		DTAA signed
Singapore	31 Mar 1990		DTAA signed for income from air transport between UAE and Singapore
South Korea
Spain	06 Mar 2006		DTAA signed
Spain	01 Nov 2005		Agreement initialled, not sealed
Sri Lanka	31 Aug 1993		DTAA for double tax avoidance on income from air transport between UAE and SL
Sudan	12 Apr 2002		Agreement signed to allow tax-free profit repatriation
Switzerland	May 1999		DTAA signed
Switzerland	27 Apr 1992		DTAA signed for double tax avoidance on income from air travel between both countries
Syria	28 Jun 2000		DTAA signed
Tajikistan			DTAA?
Thailand	29 Nov 2000		DTAA signed
Tunisia	27 Feb 1997		DTAA signed for double tax avoidance on income and capital
Turkey			DTAA?
Turkmenistan	30 Nov 1999		DTAA signed
Ukraine			DTAA?
Uzbekistan			DTAA?
Venezuela	07 Jun 2010		Agreement signed for double tax avoidance, tax evasion prevention, on income and capital
Vietnam	Feb 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

• 21 Nov 2012 (Mexico, WAM news) - UAE signed a Double Taxation Avoidance Agreement (DTAA) with Mexico on 20 Nov 2012 to avoid double taxation on income.
• 17 Oct 2012 (Japan) (WAM news):
  • Initial agreement to avoid double taxation on income signed between UAE and Japan.
  • Agreement aims to identify all the recipients of tax and financial benefits that will be covered by the main agreement, including federal government institutions, local and sovereign funds, UAE nationals, and private sector institutions that own investments in Japan.
  • Agreement also exempts national airlines, and other airlines based in the UAE, from taxes.
  • Agreement states that taxes are reduced on dividends from 20% to 5% with a reduction rate of 75% in cases where any UAE institution or company owns 10% capital of any Japanese company; or in cases where companies do not own that percentage, the taxes will be decreased from 20% to 10% with a reduction rate of 50%.
  • Japan will exempt all UAE federal and local government institutions in addition to UAE sovereign funds from 20% tax on interest profits.
  • Japan imposes a 30% tax on capital profits for residents and non-residents, the provisions of this agreement stipulate exemption of capital profits tax which results from owning shares or any interest in a company, including trust funds.
  • The agreement also provided various provisions and a protocol stating that no prohibition or restriction on tax exemptions or reductions will be applied, regardless of current or future local laws or as a result of any bilateral agreement between the two countries or multilateral agreement that either countries takes part in.
  • Both parties agreed to complete the procedures for the final signing of the agreement as soon as possible.
• 26 March 2012 (Republic of Montenegro) - two agreements signed: on double taxation avoidance, and on protection of investments.
• 11 March 2011 (Republic of Latvia) - agreement signed for the Avoidance of Double Taxation on Income (WAM report).
• 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.