We use cookies for statistical purposes.

  • Amsterdam, Netherlands
  • clients(at)lawyersnetherlands.com
  • +31630863933
Our Articles

UAE-Netherlands Double Tax Treaty

UAE-Netherlands Double Tax Treaty

A double tax treaty between the Netherlands and the United Arab Emirates allows for the avoidance of double taxation on income and also serves as an instrument for preventing fiscal evasion.

The taxation policies influence the manner in which foreign investors do business in multiple jurisdictions. The double tax treaties (DTA) concluded by the Netherlands help encourage foreign investments in the country and make it easier for Dutch companies to open branches in other countries. At our law firm in the Netherlands, we provide services and consultation for foreign investors interested in matters concerning the Dutch investment legislation.

The taxes covered by the Netherlands-UAE DTA

The double tax treaty concluded between the Netherlands and the UAE concerns the taxes on income levied by the two jurisdictions. In the Netherlands, the treaty applies to the income tax, the wages tax, the company tax, and the dividend tax. Our Dutch lawyers can give you more information about the rates of these taxes, how they apply and what reporting requirements you must observe in the country.

In the case of the United Arab Emirates, the double tax treaty applies for the income tax and the corporate tax. The agreement also applies for identical or similar taxes levied in place of or in addition to the ones mentioned above, imposed after the date the treaty was signed.

Benefits under the double tax treaty

The double tax treaty allows for a single point of taxation, in the country where the profit is derived from. When no double tax treaty exists, individuals and companies who derive income from two sources have to pay the income tax in both jurisdictions. The DTA also applies to the withholding tax on dividends. Under the treaty, the withholding tax on dividends paid to UAE entities owned by the Government is set at 0% and 5% for non-government entities. A 10% dividend tax rate can also apply.

You can contact our law firm in the Netherlands if you want to know more about how the law for foreign investments applies if you are an entrepreneur from the UAE.