In 2007, the UAE and the Netherlands signed the double taxation convention, which entered into force a year later and was revised in 2010. The purpose for this important agreement is to avoid the taxation on incomes twice and to strengthen the economic relations between the two powerful countries. Our lawyers in Dubai can provide you with information about the double tax treaty between the UAE and the Netherlands and about the taxation matters for your company in the country.
Taxes covered by the DDT the UAE – the Netherlands
The dividends, the salaries, the income and the corporate taxes in Netherlands, alongside with the income and corporate tax in the UAE are protected by the important agreement. If a company from the Netherlands is registered in the UAE and has activities in this country, the taxes will only be paid in the state where the profits are registered. As for the natural persons who receive incomes in the Netherlands or in the UAE, they will be levied in accordance with the double taxation agreement, in one of the contracting states where the revenues are registered. We remind that persons with incomes in both countries will be taxed according to the signed agreement. The double taxation treaty stipulates that the oil and gas companies from the UAE which are registered in the Netherlands will be subject to taxation on revenues. As for the permanent establishments, the double taxation will be avoided for companies with offices, branches or subsidiaries in one of the contracting states, whether they are the UAE or in Holland. Additional information about the convention between the UAE and the Netherlands can be obtained from our attorneys in Dubai. Any questions about the taxes enforced for your company in Dubai or about the VAT which is going to be enforced starting next year, you may present to our attorneys in Dubai.
Reduced taxes with the DDT UAE – the Netherlands
The treaty also provides special tax rates for dividends and interests which can be reduced. These can help with the minimization of taxes on profits in the UAE and the Netherlands. For instance, a 5% withholding tax is imposed for non-governmental enterprises, but the dividend tax is 0%. We remind that all the profits gained in one of the countries mentioned above will the levied only in the state where they are generated, as mentioned in the convention.
Please feel free to contact our law firm in Dubai for complete details in taxation matters for your company.