UAE, UK ink deal on avoidance of double taxation

The agreement enhances the depth of the bilateral relations between UAE and UK.

UAE, represented by the Ministry of Finance, or MoF, signed an agreement on the avoidance of double taxation with the United Kingdom, on Tuesday. The agreement aims to enhance the economic and trade relations between the two countries, and protect companies and individuals from direct or indirect double taxation.

The agreement was signed by Obaid Humaid Al Tayer, UAE Minister of State for Financial Affairs, and Lord O’Neill of Gatley, Commercial Secretary to the UK Treasury; in the presence of Younis Haji Al Khoori, Undersecretary at MoF, Khalid Ali Al Bustani, Assistant Undersecretary of International Financial Relations at MoF, and a number of executives from the Ministry.

Al Tayer highlighted the agreements’ role in strengthening the investment environment and economic development between both parties, as well as their role in contributing to achieving the UAE’s development goals.

Al Tayer said: “The agreement enhances the depth of the bilateral relations between UAE and UK, especially the economic and investment relations, due to the countries’ advantages of the economic integration. The agreement also provides a safe environment for bilateral investments which in turn supports the national economy.”

Al Tayer added: “The Ministry of Finance continues to expand UAE’s network of agreements on the avoidance of double taxation due to their role in supporting with economic development, diversification of national income sources as well as increasing investment opportunities through encouraging free flow of trade and investment. In fact, this will enhance the country’s economic competitiveness and benefit the investments of public and private sector and individuals.”

Lord O’Neill of Gatley said: “I am delighted to have signed today a double taxation convention between the UAE and the UK. This will fill an important gap in the framework for commercial cooperation between the UK and UAE. It will remove one area of possible uncertainty for the thousands of UK businesses operating in the UAE, and for the 100,000+ British nationals living and working in the UAE. The signing of this convention is part of the constant process of reinforcing the relationship between our two countries, which is both broad and deep, historic and modern.”

UAE signed an agreement on the promotion and protection of investments with UK, under a Federal Decree No. 26 in 1999. Both parties are also linked through the Joint Economic Committee which held its fourth session in February 2013. UAE companies have invested in a number of key sectors in UK. – business@khaleejtimes.com