TAX NEWS - June 2010

UAE Tax: UAE Signs Tax Treaty With Venezuela

The United Arab Emirates (UAE) has signed a double taxation avoidance agreement with Venezuela, the first such agreement that the UAE has reached with a Latin American country.

The agreement includes all types of taxes on income and capital, especially gains from transferring the ownership of movable and immovable properties. Taxes on investments in public and private sectors are also included and the agreement simplifies financial and tax benefits for air and sea carriers.

Younis Haji Al Khoori, UAE's Director General of the Ministry of Finance, said that the agreement was in line with efforts to strengthen the UAE's economic and investment cooperation with all countries of the world. It also confirmed the UAE's lead in double taxation avoidance agreements in the region. He added that it would have a positive impact on protecting and securing investment, trade and economic cooperation between the two countries.

The Venezuelan representative, Rafael Fernandez, Chief of the Bureau of Statistics and Economic Studies, said that the agreement sought to offer several tax benefits to stimulate investment initiatives and encourage partnerships between businessmen from both states.

The UAE expects to negotiate more double tax agreements with other South American countries.