Double Tax Treaty the UAE - South Africa

Updated on Monday 19th June 2017

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The UAE continues to reinforce the economic ties with countries worldwide by signing important double tax treaties, the recent one involving South Africa. The double tax convention between the UAE and South Africa was signed in 2015 and renewed in November 2016 with the intention of eliminating the double taxation on incomes. Investors or natural persons who want complete details about the double tax treaty between the UAE and South Africa are invited to get in touch with our accountants in Dubai, who can also provide financial consultancy on request.

Taxes covered by the DTT UAE – South Africa    

The convention between the UAE and South Africa covers the taxes on incomes, including the ones regarding the movable and immovable assets for persons and companies with registered activities in one of the contracting states. The agreement also applies to the corporation and income taxes in the UAE, where enterprises with permanent establishment are not levied on profits, but can be subject to taxation in the home country. As for the South Africa, the convention protects the dividend, the withholding tax on interests and royalties which are exempt from taxation in the Emirates.

Provisions mentioned in the double tax treaty UAE – South Africa

Even though there are no taxes for personal incomes (salaries, pensions, other earnings) in the Emirates, individuals from South Africa with registered revenues in the home country may be subject to taxation in accordance with the legislation in that country. In order to attract foreign investments, the UAE – South Africa agreement specifies numerous advantages related to the reduced taxes. For instance, the withholding tax is 10% compared to a 15% tax rate as it used to be in South Africa. The dividends, the interests, and the royalties are also subject to low fees in this country. It is good to know that the taxes for services related to the air or sea transportation are also regulated by the double tax treaty between the UAE and South Africa.

Please contact our accounting firm in Dubai for complete information about the double taxation treaties signed by the UAE.