the United Arab Emirates are striving to further improve economic relations. At
the moment, the countries are agreeing on the main terms of the new tax
agreement, but the terms of the new agreement will be less favorable than under
similar agreements with Western countries.
to the latest information, the Ministry of Finance of Russia is close to an
agreement with the UAE on a new double taxation avoidance Agreement (SIDN). At
the last negotiations in Dubai, the parties agreed on the following tax rates:
15% on dividend payments and 10% on interest income and royalties (for
comparison, rates of 15% and 20%, respectively, apply in Russia, rates of 5%
and 0% were in effect for similar SIDS with Western countries). At the same
time, Russia and the UAE did not come to a common opinion on the royalty rate
since the Arab Emirates consider the 20% rate too high and ask to set it at 0%.
Ministry of Finance stated that these conditions are not final and another
round of negotiations on the terms of the new Sydney is planned.
It is worth
noting that last week Russia signed an agreement on the avoidance of double
taxation with another Middle Eastern country — Oman. The states agreed to apply
a common 15% tax rate on income in the form of dividends and a reduced rate of
10% on income in the form of dividends of companies that own at least 20% of
the company’s equity during the year. The tax rate on interest income and
royalties will also be 10%.