UAE - Germany Double Tax Treaty
Updated on Monday 06th March 2017
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The significant double taxation agreement between the UAE and Germany was signed in 1996. New improvements related to the taxation of different incomes came in 2010 for a better and strong collaboration between the two states. Our accountants in Dubai are able to offer detailed information about the double taxation treaties signed by the UAE with numerous countries, including Germany. They can also provide you with financial consultancy for your company in Dubai.
Taxes covered by the UAE – Germany convention
The German companies with branches in the UAE will only be subject to taxation in the home country. The 5% dividend tax rate is payable in Germany, the UAE enforcing no such tax. The double tax treaty between the UAE and Germany protects the corporate taxes, the interests, the royalties of companies or natural persons with activities in one of the two contracting states by offering reduced rates which range from 0% to 15%. It is good to know that the withholding tax is 0%, and the gifts and inheritances are also not levied in Dubai.
We remind that you can receive audit services in Dubai, no matter if you own a small or a large company in the city. As for the business consultancy for your existing company, our team has a wide experience in this domain.
Taxes for natural persons in the UAE and Germany
The double taxation treaty between the UAE and Germany also contains important aspects of the taxation of a natural person. For instance, the salaries, the pensions, and other incomes in accordance with the signed work contract will not be taxed in Dubai. Moreover, we remind that natural persons can be subject to taxation in the home country. This important treaty was meant to avoid the fiscal evasion, besides offering protection of the incomes to be taxed only in one of the two contracting states.
We can offer complete clarification about the double taxation treaty between the UAE and Germany, so we invite you to contact our accounting firm in Dubai.