The United Arab Emirates has 100 double taxation agreements with most of its trading partners. “Because the UAE doesn`t have a lot of taxes, companies in the United Arab Emirates have more advantages [of double taxation agreements],” says Shiraz Khan, who heads tax practices at the law firm Al Tamimi in the region. “This may mean that they are subject to a lower withholding rate, and that is only because of the terms of the contract.” “The agreements can also allow for an exemption from foreign taxation and certain obligations to comply with foreign taxes in other countries,” says Jochem Rossel, partner and international tax services provider at PwC Middle East. “For example, between Austria and the United Arab Emirates, there is a provision that your VaE income is exempt from Austrian income tax,” says Azhari, an expert in international tax law. “The German Double Taxation Convention stipulates that any income tax you pay in the United Arab Emirates is deducted from German income tax, so you pay the full income tax in Germany.” Israel and the United Arab Emirates signed a standardization agreement on 15 September that established formal diplomatic relations. Since mid-August, several trade agreements have been signed between the two countries, in which they have agreed on a normalization of relations. The first agreement to avoid double taxation was signed between the United Arab Emirates and France. Since then, the UAE, including Dubai, has signed 92 double taxation agreements with countries around the world. Although tax treaties directly affect individuals and businesses, they are subject to a broader political environment. “The high level of fiscal sovereignty is, to some extent, concerned that too many companies are opening a branch or business in the United Arab Emirates.

You can have a business in Europe and sometimes pay up to 50 percent in taxes, and here in the United Arab Emirates you pay zero percent tax,” says Azhari. The list of conventions aimed at avoiding double taxation includes: Albania, Algeria, Armenia, Austria, Azerbaijan, Andorra, Belarus, Benin, Belize, Bangladesh, Belarus, Barbados, Bosnia and Herzegovina, Belgium, Mauritius, Canada, Bulgaria, China, Czech Republic, Egypt, Estonia, Ethiopia, Cyprus, Finland, Fiji, Georgia, Gambia, New Guinea, Germany, Greece, Hong Kong, Italy, India, Ireland, Japan, Kazakhstan, Kyrgyzstan, Kenya, Indonesia, Lebanon, Luxembourg, Liechtenstein, Lithuania, Malaysia, , Mongolia, Morocco, Mauritius, Mauritania, Mozambique, Mexico, Netherlands, New Zealand, Nigeria, Pakistan, Philippines, Poland, Portugal, Palestine, Panama, Romania, Russia, Seychelles, Singapore, Senegal, Switzerland, Spain, Serbia, Slovenia, Slovakia, Sri Lanka, South Korea, Sudan, Syria, Tajikistan, Thailand, Turkmenistan, Tunisia, Turkey, New Zealand, Ukraine, Uzbekistan, Uruguay, Uganda, Vietnam.