The Ministry of Finance (MoF) signed a protocol to amend the agreement for the Avoidance of Double Taxation and Prevention of Tax Evasion concerning taxes on income with Austria as part of its efforts to strengthen tax cooperation frameworks, protect taxpayers from double taxation, and avoid preventing the flow of trade and investment.
The treaty was signed between Mr. Obaid Humaid Al Tayer, Minister of State for Financial Affairs of the UAE, and Mr. Gernot Bluemel, Austrian Finance Minister.
Mr. Al Tayer said that “the UAE will continue to improve cooperation in all areas that serve both nations’ people and advance the process of comprehensive and long-term development. The signing of this treaty strengthens the UAE’s and Austria’s bilateral commercial relations in the area of taxation.”
The treaty will be helpful to avoid double taxation on income taxes which will eliminate opportunities for non-compliance with the tax system or decreased taxation through tax evasion or avoidance.
In 2003, both the countries signed a double taxation treaty which covered two taxation treaties like the income and cooperate taxes of both UAE and Austria. Furthermore, any similar taxes imposed by both states’ governments will be governed by the double taxation agreement.
The double taxation agreement between the UAE and Austria includes taxes imposed on natural persons and corporations based on residency. The treaty also refers to permanent establishments as unique operation sites of Austrian or UAE enterprises in the other country. The convention states that any offices, construction sites, management offices, or factories will be considered permanent establishments.
The signing of this double taxation avoidance treaty between Austria and the United Arab Emirates signifies the two nations’ strong economic ties and their desire to expand long-term cooperation.
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