Israel, UAE sign tax treaty to boost economic cooperation


Israel and the United Arab Emirates signed a tax treaty on Monday, Israel's Finance Ministry said, describing the move as a spur to business development between the countries after they normalised relations last year

The UAE finance ministry said in October that it had reached a preliminary agreement with Israel on avoiding double taxation

The tax convention, once ratified by ministers and parliament this year, will be Israel's 59th and go into effect on Jan

1, 2022

It is the first tax treaty reached in the wake of Israel's normalising relations with the UAE and Bahrain last year

In parallel, Israel has moved to improve ties with Morocco and Sudan

The treaty is based primarily on the OECD model, Israeli Finance Minister Israel Katz said in a statement, adding that it "provides certainty and favourable conditions for business activity and will strengthen economic ties" with the UAE

Under the agreement, tax deductions, dividends and royalties are capped

Israeli Foreign Minister Gabi Ashkenazi said the treaty will enable significant promotion of investment and trade that will help both countries' economies

Since a normalisation deal was signed last September, Israeli and Emirati banks and other companies have signed cooperation deals, while also establishing direct flights



Date:01-Jun-2021 Reference:View Original Link