UAE and Turkey strengthened their economic collaboration in 1994 with the first double taxation agreement and then reinforced the relations with new provisions in 2005. This important convention is meant to protect the investments and the profits of companies with activities both in the UAE and Turkey. For a better understanding of the double tax treaty between the UAE and Turkey, we suggest you to ask for help and comprehensive information from our lawyers in Dubai.
Taxes covered by the DTT UAE – Turkey
The salaries, wages, retirement funds, interests, royalties, dividends, incomes from immovable properties or other personal incomes are exempt from taxation in the UAE. Turkish companies with registered activities in the UAE are also released from taxes on profits, but they can be subject to taxation in the home country, in accordance with the rules and regulations on this matter.
The double tax treaty between the UAE and Turkey specifies the credit exemption method regarding the companies with permanent establishments and activities in both contracting states, which can benefit from a credit in the home country. This kind of credit can be obtained by enterprises which paid taxes on profits gained in one of the contracting states. We remind that any information about the double tax agreement between the UAE and Turkey can be obtained from our Dubai attorneys. Our team can also offer legal services for both local or foreign entrepreneurs interested in opening companies in the UAE.
The benefits of the double tax treaty UAE – Turkey
In order to protect and to encourage the mutual investments between the UAE and Turkey, a double taxation treaty was implemented. Such important convention was meant to ease the transference of the investment revenues between the two countries without postponements or complications, and besides that, the trade and economic collaboration have developed in a constant manner. The same significant agreement is based on a legal framework meant to cover all major sectors of the economy in order to maximize the mutual benefits.
If you want additional information about the double tax treaty between the UAE and Turkey, you are invited to contact our law firm in Dubai.