United Arab Emirates
There are currently no withholding taxes (WHTs) applicable in the United Arab Emirates.
Tax treaty network
UAE national or resident individuals and UAE resident companies have access to an extensive and growing double tax treaty (DTT) network. These DTTs may not be immediately relevant for obtaining relief from UAE taxation (as the United Arab Emirates does not levy WHT or other forms of non-resident taxation); however, they may continue to allow for relief from taxation in DTT partner countries. For completeness, the DTTs currently in force are listed below. A number of other DTTs are at various stages of negotiation and ratification.
|Bosnia and Herzegovina||0/5/10||0||0/5|
|China, People’s Republic of||0/7||0/7||10|
|Costa Rica (1)||0/5/15||0/5/10||12|
|Czech Republic||0/5 (2)||0 (2)||10 (2)|
|Korea, Republic of||5/10||0/10||0|
|Singapore||0 (2)||0 (2)||0/5 (2)|
|Thailand||5/10 (2)||0/10/15 (2)||15|
|Ukraine||0/5 (2)||0/3 (2)||0/10 (2)|
- This DTT will be effective from 1 January 2022.
- This DTT includes a ‘favoured nation’ clause. If this jurisdiction ever concludes a more favourable treaty WHT rate with a country other than the United Arab Emirates, then the more favourable treaty WHT rate will automatically apply to the UAE treaty as well. Note that the above-mentioned rates do not reflect the more favourable DTT rates but only the rates presented in the DTT between the United Arab Emirates and the relevant jurisdiction. The more favourable rates will need to be confirmed separately.
- A new DTT between the UAE and Egypt was signed in November 2019, and has been ratified by both the UAE and Egypt. The updated treaty will enter into force after the ratification instruments have been exchanged. The WHT rates shown in the table relate to the new DTT.
- The UAE-Malaysia DTT provides for a reduced rate of 10% where dividend payments are made from a UAE entity to a Malaysian entity. The DTT, however, provides for a lower rate of 0% where payments are made from a Malaysian entity to a UAE entity.
- The UAE-Germany DTT will be terminated effective from 31 December 2021.
- Government institutions only.