In line with its role to provide a suitable environment for Emirati investments abroad, the Ministry of Finance (MoF) recently organised a meeting with its governmental strategic partners in the UAE to discuss its future plan to sign double tax avoidance agreements with various countries throughout 2014.
The meeting was headed by HE Younis Haji Al Khouri, Undersecretary of MoF in the presence of HE Khalid Ali Al Bustani, Assistant Undersecretary of International Financial Relations Sector at MoF; Majid Ali Omran, MoF’s Director of International Financial Relations; Dr. Hamid Nasr, Economist at MoF and representatives from the Ministry of Foreign Affairs, Emirates Investment Authority, Mubadala Development Company, International Petroleum Investment Company (IPIC), DP World and Investment Corporation of Dubai, in addition to Etihad Airways, Emirates Airline, Fly Dubai and Air Arabia.
HE Younis Haji Al Khouri, along with the participants, outlined the operational plan developed by the Ministry to negotiate the avoidance of double taxation on income agreements for the year 2014, as well as to continue to avoid taxation levied on air transportation and implement memorandum of understandings on tax exemption. Participants were also briefed about the process of tax treatment of the UAE’s private or public investments, before signing double tax avoidance agreements on income.
Commenting on the meeting, HE Younis Haji Al Khouri, Undersecretary of MoF, highlighted the Ministry’s commitment to conduct a series of consultations between its strategic partners in order to achieve the desired goal of expanding the investment base which links the UAE to the rest of the world. HE is delighted by the role these investments have played on strengthening the UAE’s position on the global trade map.
HE said: “The double tax avoidance agreements have a positive effect on protecting and guaranteeing UAE investments abroad, enhancing trade and economic cooperation between the countries. These agreements provide significant benefits to all UAE investors, institutions, federal and local governments, companies, sovereign funds, institutions with private sector operations, individuals residing in the UAE, as well as state-owned national airlines that become exempt from all types of taxes.”
The meeting also featured a discussion about the progress being made by the Ministry through cooperative efforts with the Ministry of Foreign Affairs to resolve the pending issues before the start of any double taxation avoidance negotiations with Latin American countries. Furthermore, the meeting allowed participants to provide their feedback and recommendations on this topic, while the Ministry stressed the need to know the size of any proposed UAE investments in these countries, prior to commencing any negotiations.
The UAE has signed 75 double taxation avoidance agreements with the country’s key trade partners and 46 agreements to protect and encourage investments abroad.
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Wednesday, February 5- 2014 @ 8:04 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.