The United Arab Emirates, through its Ministry of Finance, has wrapped up the final round of negotiations for a landmark Double Taxation Avoidance Agreement (DTAA) with the Russian Federation, an essential step towards enhancing economic collaboration and fostering a pro-business environment.
This agreement signifies the UAE’s dedication to fortifying economic and tax cooperation while safeguarding taxpayers’ rights. By preventing double taxation and promoting seamless trade, the DTAA is set to stimulate investment opportunities.
The recent negotiations took place at the Ministry’s offices in Dubai, culminating in the initial signing of the draft agreement. The UAE delegation was spearheaded by Younis Haji Alkhoori, the Under-Secretary of the Ministry of Finance, alongside Shabana Aman Khan Begum, Executive Director of the Tax Policy Sector. Representing Russia was Alexey Sazanov, Deputy Minister of Finance, who led the Russian delegation.
The DTAA aims to establish a robust tax framework that encourages investments by eliminating barriers that might deter foreign and domestic investors. By setting clear guidelines, the agreement is expected to enhance investor confidence and catalyze joint investments, further consolidating economic and trade relations between the UAE and Russia.
Moreover, this agreement seeks to create new avenues for economic growth, facilitate knowledge transfer, and promote sustainable financial links between the two countries. The anticipated ripple effects include a more dynamic exchange of expertise and technologies among institutions and businesses on both sides.
Speaking on this milestone, Younis Haji Alkhoori emphasized that the ongoing negotiations are part of a broader initiative to improve the investment landscape while addressing tax-related challenges faced by individuals and enterprises in both nations.
“Signing this agreement represents a strategic step toward strengthening economic ties with Russia. It will offer a clear and stable legal framework that bolsters investor confidence and stimulates trade activities, attracting investments from both foreign and domestic sources,” he stated.
Alkhoori concluded with optimism regarding the agreement’s future impact: “We believe this DTAA will significantly contribute to economic growth and unveil new opportunities for cooperation across multiple sectors. It prominently reflects the UAE’s ongoing commitment to cultivating a stable, investment-friendly tax atmosphere, reinforcing our nation as a preferred destination for international investors.”
Read this article about UAE’s Corporate Tax Break
