The UAE and Qatar Signed An Agreement to Avoid Double Taxation and Enhance Economic Cooperation

Introduction

In the framework of global strategic partnerships and to enhance competitiveness of the United Arab Emirates, the Ministry is working on expanding its Double Taxation Agreements (DTA) and Bilateral Investments Treaties (BIT) network , where it concluded 193 DTAs and BITs, with the purpose of exempting or reducing taxes on investment and profits from direct and indirect taxes in addition to protecting those investments of all kinds of non-commercial risks to ensure that those profits can be transferred in a free convertible currency.

Double taxation is defined when similar taxes are imposed in two countries on the same taxpayer on the same tax base, which harmfully affects the exchange of goods, services and capital and technology transfer and trade across the border.

Public and private companies, investment firms, air transport firms and other companies operating in the UAE, as well as residents, benefit from Avoidance of Double Taxation Agreements (DTA). With the purpose of promoting its development goals, the UAE concluded 137 DTA with most of its trade partners.

The UAE and Qatar Signed an Agreement to Avoid Double Taxation and Enhance Economic Cooperation

The UAE and Qatar have signed an agreement to avoid double taxation and prevent fiscal evasion of income taxes. The signing ceremony took place during the 121st meeting of the GCC Financial and Economic Cooperation Committee in Doha on Thursday, 30th May 2024.

The agreement was signed by Mohamed Hadi Al Hussaini, UAE Minister of State for Financial Affairs, and Ali bin Ahmed Al Kuwari, Qatari Minister of Finance. Al Hussaini highlighted the agreement’s potential to enhance financial, economic, and investment partnerships between the UAE and Qatar. It aims to bolster coordination in tax matters, open new investment opportunities, and stimulate trade. Additionally, it will help diversify national income sources and provide comprehensive protection for goods and services.

Al Hussaini emphasized that the agreement strengthens economic and trade relations between the two countries and offers complete protection for companies and individuals against double taxation.

To date, the UAE has signed 146 double taxation avoidance agreements and 114 pacts to protect and promote investments.

Separately, Qatar and Saudi Arabia signed a similar agreement to avoid double taxation and prevent fiscal evasion concerning income taxes. The agreement was signed by Ali bin Ahmed Al Kuwari, Qatari Minister of Finance, and Mohammed Aljadaan, Saudi Minister of Finance, with Khalifa bin Jassim Al-Kuwari, President of the General Tax Authority, in attendance.

This agreement reflects Qatar’s commitment to enhancing economic relations and trade cooperation, aligning with global transparency standards, and creating a fair tax environment. It supports the goals of Qatar National Vision 2030 by encouraging trade, facilitating exports, and reducing risks for importers, thereby strengthening partnerships with regional and international markets.

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