The United Arab Emirates and France have signed a double taxation agreement in 1989 in Abu Dhabi. The agreement was enforced in the summer of 1990 in both countries and compared to other UAE double taxation treaties, it was enacted for an indefinite period of time. The double taxation agreement applies to both French and UAE residents. Our company registration agents in Dubai can provide you with more information regarding the taxation system in the UAE.
According to the UAE-France double taxation agreement, the following taxes are covered:
The agreement also covers other similar taxes whether they are applied before or after signing the convention. Any new tax enabled by one of the two signatory states will be added or replaced in the current double tax treaty between the UAE and France.
Under the double taxation agreement signed by the UAE and France the income applies to the worldwide incomes of both French and UAE residents. The incomes covered by the agreement can result from the following activities:
The UAE-France double taxation treaty also defines the term “permanent establishment” of a French or UAE company and how their incomes will be taxed.
The following tax rates have been put in place by the UAE-France double taxation agreement:
In case of taxation of other incomes, the avoidance of double taxation will occur by granting a credit against the tax paid in the other contracting party.
For complete information about the provisions of the double taxation treaty with France, please contact our Dubai agents in company formation.