Signature of Double Taxation convention between Ireland and the United Arab Emirates
In Dubai on 1st July, Mr Ciarán Madden, Ambassador to the United Arab Emirates on behalf of the Government of Ireland and Mr. Younis Haji Al Khoori, Director General of the UAE Ministry of Finance., on behalf of the Government the United Arab Emirates signed a Double Taxation Convention between Ireland and the United Arab Emirates.
Negotiations for a Convention with the United Arab Emirates took place in Dublin in June 2009.
The Convention is comprehensive in scope and generally follows the OECD Model Convention. It applies to taxes on income and gains imposed by both States.
The main purpose of the Convention is to avoid the taxation in both countries of the same income or gains. This is achieved by allocating exclusive taxing rights to one or other country, or where both countries retain taxing rights, by requiring the country of residence of the taxpayer to grant relief for the tax paid in the other country.
The Convention provides for no withholding taxes on dividends, interest and royalty payments.
Other important Articles in the Convention include the exchange of information provisions, which are necessary to counter tax evasion.
The Convention is expected to have a positive impact on trade and investment between Ireland and the United Arab Emirates. The exemptions in withholding taxes and other fiscal benefits conferred in the Convention will significantly assist future business and investment in both countries.
If, as expected, the provisions for ratifying the Convention are completed by both countries in 2010 it will enter into effect from 2011.
Ireland has currently 48 Double Taxation Treaties in effect with several others in the pipeline.
The text of the Convention (PDF, 171KB)