UAE has signed double taxation treaty with 65 countries

ABU DHABI The economic strategy of the UAE is aimed at attracting foreign direct investment (FDI) to boost the economic development in the country and to facilitate this, it has signed bilateral agreements with 65 countries on avoidance of double taxation and income tax.

By (|BY A STAFF REPORTER|)

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Published: Sun 4 May 2003, 1:27 PM

Last updated: Wed 1 Apr 2015, 9:10 PM

Addressing a seminar on legal and tax issues related to bilateral investment between the UAE and Germany, organised by the Abu Dhabi Chamber of Commerce and Industry, Khaled Al Bostani, Under Secretary for Budget and Revenue, Ministry of Finance and Industry, said that these countries included some from the European Union, Arab, South Asia, Canada and other major trading partners.

He said that the agreements with Germany came into effect in July 1996, and was applied retrospectively from 1992 and pointed out that the UAE had adopted the rules of a free economy since its founding and market mechanism played the main role in all spheres of the economy.

There were no restrictions on trade in goods and services and on the movement capital and because of this the Heritage Foundation ranked the UAE the second most free economy in the Arab Region and 13th in the world.

Khaled Al Bostani said in spite of reliance on oil, the UAE economy had diversified and the non-oil sector was now contributing two-third of the GDP.

He said that when the world was facing a dismal economic outlook, the UAE economy was poised for continued economic growth, adding that this was possible because of the stable political climate, prudent macroeconomic policies, diversification of economic base and contribution of private sector, among many other things.

He said that since the agreement was signed with Germany, the tax situation of UAE investors had improved considerably. These improvement included the limiting of preferential treatment on dividend at 5 per cent and reduction of withholding tax to zero level.

Deputy Director General of the ADCCI, Ahmed Hasan Al Mansouri said that the seminar was the result of joint efforts by the ADCCI and a number of consultants and legal firms in the UAE and Germany and the discussions would benefit businesses and help promote trade and investment besides awareness on taxation matters. Dr Christian Roedl of Roedl and Partner presented a paper on German legal and tax framework and the impact of the double taxation treaty between the UAE and Germany. Dr Oliver Wirth of Meyer Reumann Consultants discussed issues relating to UAE-German Investment protection Treaty.



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