UAE - China Double Tax Treaty

Updated on Thursday 19th January 2017

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The UAE and China signed the double taxation agreement in 1993, it entered into force the next year and was meant to boost the economic collaboration between the two states and to encourage the investments. Our accountants in Dubai can offer detailed information about the double taxation agreement between the UAE and China. Besides that, any individual who wants to establish his presence in Dubai has the possibility to receive financial consultancy and audit services for a small or a large company in Dubai.

Information about the UAE – China double taxation treaty

The convention between UAE and China protects the corporate and the income taxes in both countries, besides capital gains, royalties and dividends which are stipulated in the treaty for companies and also natural persons. This way, overseas investors in the UAE and China are helped to evaluate the taxes and the profits developed from their fruitful commercial activities. One should know that certain incomes of a company, which are levied in the UAE, will not be taxed in China. Here is how the double taxation avoidance is made under the convention between the two states:

•    exceptions from capital gains taxes;
•    tax reductions or eliminations for dividends;
•    no income taxes;
•    exemption of cargo taxes for national air companies and shipping enterprises;

Double tax treaty for natural persons in the UAE and China

People who legally work in the UAE benefit from the same system related to the avoidance of the double taxation. Incomes registered as salaries or pensions are covered by the double tax convention between the UAE and China. A foreign citizen with a legal work contract in Dubai will not be levied for the revenues but might be subject to taxation in his home state.

Significant economic relations between the UAE and China

China and the UAE have established excellent economic and trade collaborations many years ago and were interested in protecting the investments in both countries and to avoid the double taxation. Health, transportation, aviation, construction, metal industry, energy, education, financial services, and manufacturing are the most important sectors of development and investment for both countries. About $ 4,000 billion were registered as a trading volume between the UAE and China (import and export) in the last decade and future projects related to the important sectors are in a debate.

You are invited to get in touch with our accounting firms in Dubai for extra information about the double taxation convention between the UAE and China, and about the accounting services available for your company in Dubai.


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