UAE - The Netherlands Double Tax Treaty

Updated on Friday 09th June 2017

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The double taxation treaty between the UAE and Netherlands was signed in 2007 and then reviewed three years later. Such agreement was meant to eliminate the fiscal evasion by avoiding the double taxation on incomes for both companies and natural persons with activities in one of the two contracting states. Numerous taxes are covered by the double taxation agreement and we suggest you solicit complete information in this matter from our accountants in Dubai.

Taxes covered by the DTT between the UAE and the Netherlands

The salaries, the pensions, the dividends, the royalties and the interests are protected by the double taxation convention between the UAE and the Netherlands and will be levied only once, in the country where the activities are registered. It is good to know that the profits of companies from the UAE with activities that generate money from natural resources exploitation in the Netherlands shall be levied only in the UAE, also being available for Dutch companies with activities in the Emirates. The tax rate on dividends is 0% for companies under UAE government. 

Moreover, we remind that companies from the Netherlands with permanent establishments in the UAE shall be levied on incomes only where the activities are performed. Businessmen interested in activities in the Emirates should solicit information about the taxation system in the country from our Dubai accountants who can also perform audits in Dubai, no matter if it’s a big or a small company involved.

Preferential taxes as stipulated by the UAE -  Netherlands DTT

Dubai is an important business hub and preferred among foreign investors who want to benefit from tax reliefs. For instance, the withholding tax rate for dividends does not exceed a 10% rate, as mentioned by the double taxation convention between the UAE and the Netherlands. Furthermore, individuals from the Netherlands with work contracts in the UAE should know that there are no taxes on personal income. If there are profits registered in the home country, these are going to be levied in accordance with the law.

Additional details and information about the double taxation treaty between the UAE and the Netherlands can be obtained if you contact our accounting firm in Dubai.


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