UAE, Hong Kong Initial DTA

The United Arab Emirates’ Ministry of Finance has announced that a double tax convention was initialled with Hong Kong on July 20.

Signatory for the agreement on behalf of the UAE, the Finance Ministry’s Director General, Younis Haji Khouri explained that the agreement would contribute to the free movement of capital in line with the Ministry’s aim to strengthen the country’s financial relations globally. He noted that double tax agreements, of which the UAE has 52, enhance the country’s investment climate, and contribute to its economic development.

The double tax convention, when it enters into force, after it is signed and ratified, will assign the taxing rights of the respective territories and ensure that trade and investment between the two countries, undertaken by individuals and businesses, are not taxed twice.

Bilateral economic activity is already well developed between the two territories, according to Hong Kong’s Trade Development Council. Exports to the UAE amounted to 54% of that exported to the Middle East during 2009, it said.