Company Formation Dubai

CHECK COMPANY
NAME AVAILABILITY (Step 1)



Articles

Double Tax Treaty UAE-USA

Updated on Tuesday 19th April 2016

Rate this article
5 5 1
based on 3 reviews


Double-Tax-Treaty-UAE-USAThe United Arab Emirates have not sign a double taxation agreement with the United States of America yet, but the two countries have strong economic relations based on bilateral investment treaties. The reason the two states have not concluded a double taxation treaty yet is because no personal income and corporate taxes are levied in the Emirates’ free zones where full foreign ownership of companies is allowed. Dubai is one of the Emirates not withholding any taxes on the incomes earned by foreign investors. However, Dubai has signed different double taxation treaties in order to become a more attractive territory to foreign enterprisers. UAE’s double taxation treaties are meant to reduce the withholding taxes applied in the home countries of foreign companies operating in the Emirates.

For a complete list of all UAE’s double taxation agreements you can ask our agents in company registration in Dubai.

Tax decrees in the UAE

Even if there is no double tax treaty between the UAE and the US, the UAE Government has issued several tax decrees that cover the taxation of foreign citizens living, working or owning companies in the country. Each tax authority in the Emirates imposes an income tax that can reach 50% on the taxable income of companies, no matter their country of incorporation. However, this tax is only imposed to companies exporting oil and foreign banks. It must also be taken into account that the tax rate will vary as it is calculated based on rates agreed upon by a company and the Emirate’s tax authorities, therefore it is personalized.

Taxation under double tax agreements in the UAE

The agreements for avoidance of double taxation signed by the UAE are not very relevant when it comes to the taxes levied in the Emirates because taxation is subject to the determination of tax liability. All the taxes paid by a foreign company operating in the UAE can be credited in the company’s home country based on the double taxation agreement and the domestic tax laws.

Recently the UAE and the US have signed an agreement for international tax compliance. For complete information about the UAE taxation system, please contact our company registration agents in Dubai.

 

Comments

There are no comments

Comments & Requests


Please note that client queries should NOT be posted here but sent through our Contact page.

Meet us in Dubai

Call us now at 0031765870401 to set up an appointment with our specialists in company formation in Dubai,  United Arab Emirates.

UAE free zones.png

24h.png

free evaluation.png

 

Online Incorporation

tax-calculator-dubai

Tax Calculator

tax-calculator-dubai

Testimonials

Francesco-Dagnino.jpg

Bridgewest international network takes great care of selecting its affiliates worldwide and their local partners from Dubai are no exception.

Francesco Dagnino, Partner of
Lexia Avvocati
www.LawyersItaly.eu

Read more testimonials

Client Reviews

Excellent Services! Finally understood the differences between the types of Free Zones and offshore companies in UAE. Recommend! See more reviews Add your review!

We recommend ClientPedia

This website is marketed by ClientPedia

banner Clientpedia.jpg