“We have covered almost 120 countries and are still expanding, we are signing other agreements with South American countries and a few other African countries, as well as cooperation with the Nordic countries,” Younis Al Khoori, undersecretary of state at the UAE Ministry of Finance, told The National. 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. DUBAI/JERUSALEM, Oct 15 (Reuters) – The United Arab Emirates and Israel have reached a tentative agreement on preventing double taxation as part of measures to encourage investment between the two countries, the U.S. Ministry of Finance said on Thursday. 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 list of conventions aimed at avoiding double taxation includes: 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, Indonesia, Fiji, Georgia, Gambia, New Guinea, Germany, Greece, Hong Kong, Italy, India, Ireland, Japan, Kazakhstan, Kyrgyzstan, Kenya, Indonesia, Lebanon, Luxembourg, Liechtenstein, Lithuania Malaysia, Malaysia Macedonia, Malta, Mongolia, Montenegro, 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, South Korea, Sudan, Syria, Tajikistan, Thailand, Turkmenistan, Tunisia, Turkey, New Zealand, Ukraine, Uruguay, Uruguay, Vietnam.