As published on islamicbusinessandfinance.net, Monday 8th April, 2019.
The Avoidance of Double Taxation Agreement signed between the UAE and Saudi Arabia came into effect at the beginning of this month, after both countries completed the necessary procedures in accordance with their regulations.
The UAE signed the agreement with Saudi Arabia on the avoidance of double taxation on income and capital as well as the prevention of tax evasion in May 2018.
The agreement seeks to strengthen the cooperation in tax matters and consolidate the financial, economic and investment partnership between the two countries.
In a statement, the UAE’s Ministry of Finance (MoF), said that the agreement is in line with the Emirates’ efforts to increase investment opportunities, encourage trade and diversify the sources of national income as well as full protection of goods and services.
HE Younis Haji Al Khoori, the Undersecretary of MoF, said, “These agreements contribute to the elimination of double taxation, facilitate cross-border trade as well as investment flows and provide protection to taxpayers from direct and indirect double taxation.”
The in turn enhances the country's investment climate and makes it more attractive as a destination for foreign investment.