UAE signs pacts with Arab countries to avoid double taxation
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UAE signs agreements with Arab countries to avoid double taxation

UAE signs agreements with Arab countries to avoid double taxation

The agreements seek to eliminate double taxation, additional taxes, indirect taxes, and tax evasion while addressing cross-border trade challenges

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UAE, Arab countries sign agreements to avoid double taxation

The UAE has signed agreements to boost investments and avoid double taxation with Kuwait, Bahrain, Egypt, and the World Bank.

The agreements seek to eliminate double taxation, additional taxes, indirect taxes, and tax evasion while addressing the challenges of cross-border trade and investment flows.

The treaties are also aimed at boosting developmental goals and diversifying the Gulf state’s sources of income.

The pacts also account for tax challenges and keep pace with global changes in the economy and financial sectors, new financial instruments, transfer pricing mechanisms, and encourage the exchange of goods and services and the movement of capital.

“These agreements stem from the Ministry of Finance’s commitment to achieving transparency and fairness and enhancing the national economy through strengthening strategic partnerships with various countries and the World Bank,” said Mohamed Hadi Al Hussaini, the Minister of State for Financial Affairs.

The agreements were signed on the sidelines of the World Governments Summit 2024, which is being held in Dubai under the theme of “Shaping Future Governments”.

UAE’s pacts with the World Bank, Arab nations

The UAE and the World Bank signed a second renewal pact for the payable advisory services agreement between the Gulf state and the International Bank for Reconstruction and Development.

The accord serves as an umbrella for technical support agreements signed between federal and local entities, which paves the way for them to benefit from the technical support services provided by the World Bank. The signing marks the second renewal of the agreement that was initially signed in 2014 and first renewed in 2019.

“Partnership plays a critical role in turning our ambitions into action,” said World Bank President Ajay Banga. “This new chapter of collaboration between the World Bank and the UAE is a step forward in advancing knowledge that is critical to delivering impact for the UAE and globally.”

Shaikh Salman bin Khalifa Al Khalifa, Minister of Finance and National Economy of Bahrain highlighted that the pact to encourage and protect investments and avoidance of double tax comes within the framework of joint efforts to advance economic, trade and investment cooperation between the UAE and Bahrain.

Meanwhile, Dr. Anwar Al Mudhaf, Minister of Finance and Minister of State for Economic Affairs and Investments of Kuwait said the agreement with the UAE is expected to positively impact the citizens and investors from both countries.

Egypt’s Minister of Finance, Dr. Mohamed Maait, said the supplement agreement to eliminate double taxation and prevent tax evasion seeks to enhance collaboration opportunities for joint investments.

To date, the UAE has signed 143 double taxation avoidance agreements and 112 treaties to encourage and protect investments, which collectively provide a legal framework that protects the Gulf state’s investments worldwide.

Read: UAE attracts second-highest FDI inflow after US: UNCTAD

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