Investment protection is in the interest of the United Arab Emirates and signs 58 agreements to protect and encourage investment. These agreements were concluded between the United Arab Emirates, 25% of the world`s nations and most of its trading partners. Double taxation pays twice taxes for the same salary. If you are twice in two different countries, that is what happens. This is where the double taxation convention comes in, which ensures that you are not taxed twice at the same time in different countries or countries for the same income. The MoF has agreements with countries to achieve transparency, fairness and protection of the economy. MoF has signed a Memorandum of Understanding with the Organisation for Economic Co-operation and Development (OECD). The United Arab Emirates has a strong interest in protecting and encouraging investment. There are 58 agreements signed by the United Arab Emirates with countries that represent investment opportunities. Negotiations with the other five countries are not yet complete.
The United Arab Emirates has signed an agreement with the U.S. government to improve international tax compliance under the Foreign Account Tax Compliance Act (FATCA). The text of the agreement aims to facilitate a tax environment conducive to the promotion of economic activity, including an exemption from income taxation and a reduction in the tax on private investment from 17.5% to 5%. Revenues from the air transport sector are also exempt under the pact. The government of the United Arab Emirates has confirmed the signing with Bangladesh of an agreement to avoid double taxation and tax evasion. Khalid Al Bustani, Executive Director for International Financial Relations at the UAE Ministry of Finance, commented on the draft agreement as: agreements that have been processed and are the subject of ongoing discussions with other countries help to achieve a balance in the economy. In line with the G20 decisions, MoF is very interested and is committed to implementing the highest standards of transparency and information exchange for tax purposes. These include the conditions that coincide with the agreements, all to avoid double taxation with the UAE`s economic and trading partners. The Ministry of Finance (MoF) organized with a team made up of representatives from different departments, namely the Ministry of Foreign Affairs (MOFA) and the Abu Dhabi Investment Authority (ADIA), and appointed it the Department of International Financial Relations and Organizations.
This group has a responsibility to negotiate agreements to avoid double taxation with nations and to pursue them.