UK – UAE Double Tax Treaty

We have many clients who have moved to the UAE and specifically Dubai in recent years, many of whom are pleased to know that the UK and United Arab Emirates (“UAE”) Double Taxation Agreement (“DTA”) was signed on 12 April 2016 and entered into force on 25 December 2016.

Given a large part of the world consider the UAE to be a tax haven by virtue of it not imposing any form of direct taxation on most businesses and individuals,
this is a huge milestone.

This tax free status in the UAE makes the DTA a very important tax planning tool and removes many areas of uncertainty for UAE resident businesses and individuals on their UK tax position.

The DTA will be especially helpful for dual residents of the UK and UAE that are able to claim treaty residence in the UAE, it will also be of great benefit to the residents of the UAE with UK pensions as the treaty provides that your country of tax residence is where you will be taxed (or not taxed as the case may be).

If you or your business are based in Dubai and elsewhere in the UAE and would like to understand the impact of the DTA on your tax affairs please contact us for further advice.