UAE official: Double taxation deals paving the way for FTA’s
MENAFN - 05/11/2005
(MENAFN) According to a top UAE government official, double taxation agreements are paving the way for future free trade agreements and saving millions of dollars for of local companies, Gulf News reported.
After 14 years of negotiations, the UAE signed an agreement with Spain that exempts countries from paying tax on income and capital in both countries.
It already has agreements with 45 countries, including most of Asia and Europe.
Besides enabling UAE companies and investors to achieve better returns, these agreements also help reduce the cost of investment, which in turn should make it easier to settle the ongoing free trade talks with the European Union, the United States and Latin American countries, the official said.
According to him, aviation, shipping and hospitality industries, in addition to the property sector and government investments, are the biggest beneficiaries of the tax agreements.
Thanks to these tax agreements, national air carriers in the UAE — Emirates, Air Arabia and Etihad have saved more than Dh600 million over the past five years, the official said.