• Service: Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 7/24/2013

United Arab Emirates - Tax treaty updates 

July 24: The United Arab Emirates (UAE) during the first quarter of 2013 signed income tax treaties with Hungary, Benin, Libya, Japan, and Serbia, and an air transport agreement with Senegal.

Treaty negotiations are continuing with Peru, Kyrgyzstan, and Malawi.

Unlike other recent UAE treaties, the newly signed UAE-Japan income tax treaty takes a different approach to the test of residence. The term “resident of a contracting state” includes a “liable to tax” criterion for the treaty’s application, rather than other criteria (such as “place of effective management” or “incorporation”).

Read a July 2013 report prepared by KPMG International: United Arab Emirates – new treaties, new free zone & other updates

The KPMG report also discusses:

  • Tax residency certificates – challenges and access to tax treaty benefits
  • Foreign banks – pending tax audits and assessments in Abu Dhabi
  • New Abu Dhabi financial free zone

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