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Double Tax Treaty UAE – Italy

Double Tax Treaty UAE – Italy

The authorities in Italy and UAE have signed a double tax treaty in order to avoid overtaxation of companies and to secure a more transparent and safe economic climate in the business area. The main purpose of the treaty is to regulate the taxation of income of enterprises and to avoid tax evasion. Our law firm in Dubai is ready to offer you legal counseling and help in order to understand the aspects of the treaty which influence your economic revenues from the two countries.   

The main taxes covered by the UAE – Italy treaty

The double tax treaty between UAE and Italy comprises both Italian and UAE versions of local taxes. In Italy these taxes refer to the personal and corporate income. Their UAE equivalents, the income tax for legal and natural persons and the corporate tax from the UAE are also included in the treaty. 

Whenever a new tax is introduced in one of the two countries, it is automatically included also in the bilateral convention between the two states. Both Italy and the UAE have as responsibility informing of the other country about the modifications brought to the tax rates and regulations. The tax treaty relies on a principle of mutuality between the two countries. 

The companies which can become beneficiaries of the treaty must make proof of a permanent establishment in one of the two states. The establishment is considered the place of business of a company thus contributing to the determination of the residency of a company. The permanent establishment may refer to an office, workshop, branch, factory, mine or other types of sites on which the company rely. 

You are welcome to address your questions to our Dubai lawyers who can provide you with complete information regarding the way in which the double tax convention between Italy and UAE can apply to your company.

The applicability of the Italy – UAE double taxation treaty

The objectives of the double taxation convention between Italy and the UAE are the encouragement of foreign investment and an implicit development of the economic trade between the two countries. Both Italian and UAE residents benefit equally from the provisions of the treaty. 

Business profits as well as revenues from immovable property make the object of the treaty along with the profits derived from transportation. The taxation of interest, royalties, capital gains and dividends make another chapter of the treaty and benefit of special rates of taxation.  

You are welcome to contact our attorneys in Dubai for finding out more about the available methods to avoid double taxation in one of the two countries.