UAE - Canada Double Tax Treaty
Updated on Monday 16th January 2017
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The convention between UAE and Canada was signed in 2002 and entered into force a year later. The treaty specifies exclusive provisions and reduced taxes related to profits, dividends, royalties, national transport carriers and bond profits. Our accountants in Dubai are able to offer you details about the UAE and Canada double taxation agreement, besides offering accounting services for your small or large company in Dubai.
Information about the UAE – Canada double taxation treaty
The double taxation convention between UAE and Canada provides for the income and the corporate taxes in UAE and Canada and related taxes specified in the agreement, and covers enterprises and also natural persons. The rate of the withholding tax is set to 5% and for specific non-portfolio dividends, the rate is set to 10%.
The incomes of a company from a contracting country will be charged only in that country unless the establishment has traded in the other contracting state through a permanent institution situated there. Besides offering specific information about the double taxation treaty between the UAE and Canada, our accounting specialists can provide you with business consultancy or audits in Dubai.
Other important provisions mentioned in the UAE – Canada tax convention
Capital gains of a citizen or resident of Canada from the alienation of immovable property located in the UAE will be charged in Canada. Royalties arising in the UAE and paid to a resident in Canada will only be taxed in Canada. Regarding the natural persons, the revenues, the wages and the salaries will only be taxed in the country where the employment contract is signed. More than 50 Canadian companies have fruitful activities in the UAE, and according to economic experts, the trade between these two states are continuously developing, generating substantial profits for both Canada and the UAE.
Additional information and details about the UAE – Canada double taxation treaty or about our accounting services available for your company can be found if you contact our accounting firm in Dubai.