The UAE signed numerous important double taxation agreements with countries worldwide to attract foreign investments by offering reduced taxes and avoiding the double taxation. One of the treaties is the convention signed with Spain in 2006, which covers taxes for both companies and natural persons with activities in the UAE or Spain. Businessmen interested in opening companies in Dubai should solicit information and details about the taxation system in the UAE from our accountants in Dubai. Also, they can ask for financial consultancy and audits in Dubai.
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Taxes covered by the DTT UAE – Spain
In order to avoid the double taxation on incomes registered in the UAE or Spain by companies and individuals, the two countries have signed an agreement. According to the provisions of the double taxation treaty between the UAE and Spain, the royalties, the corporate tax, the dividends, the interests, and the capital gains will be paid only once, in the country where the activities are legally registered, in our case the UAE or Spain. The salaries and the pensions of natural persons are also protected by the double taxation agreement. Moreover, one should know that there is no withholding tax on interests, but the dividends and royalties are subject to reduced fees.
Entrepreneurs who want to set up their activities in a form of a company in the UAE have now the possibility to receive complete information in taxation matters and financial issues from our Dubai accountants who have a vast experience in this important area.
Other provisions stated by the double tax treaty UAE – Spain
The taxation system in the UAE is a relief for numerous individuals who decide to work in major cities. Personal incomes, just as salaries, pensions or other incomes are not levied in Dubai. But an individual with a work contract in the UAE and another one in Spain should remind that there are taxes to be paid in the home country. Spanish companies with offices, places of management, or branches in the UAE are considered permanent establishments, a case where the taxes will be paid only in this country.
Would you like payroll services in Dubai? Our specialists can successfully manage a series of procedures and formalities in this regard. Thus, in addition to the calculation and distribution of salaries, they can also deal with statistical reports, employment registration, recruitment, and the calculation of medical leave where appropriate. The outsourcing of these services is advantageous in terms of costs because they are calculated according to the size of the company and the number of employees.
You may rely on our accounting services in Dubai for any kind of company you might have, therefore, please feel free to contact our accounting firm in Dubai for any information.