The agreement on avoiding double taxation between the UAE and Saudi Arabia comes into force

07-04-2019 Media in\ Dubai
The agreement on avoidance of double taxation signed between the UAE and Saudi Arabia came into force in early April after the two countries completed the necessary procedures in accordance with their regulations for the entry into force of this agreement.
The UAE, represented by the Ministry of Finance, has signed an agreement to avoid double taxation in respect of taxes on income and capital and to prevent tax evasion with Saudi Arabia at the headquarters of the Saudi Ministry of Finance in Jeddah in May 2018.
The agreement aims at strengthening cooperation frameworks in tax matters and strengthening the financial, economic and investment partnership between the two brotherly countries. This is in line with the UAE’s efforts to increase investment opportunities, encourage trade exchange and enhance the country’s development goals through diversification of national income sources and full protection of goods and services.
Undersecretary of the Ministry of Finance Younis Haji Khouri affirmed that the entry into force of the agreement to avoid double taxation with Saudi Arabia is an important step in enhancing the bilateral relations between the two countries, especially on the financial and economic levels. The Kingdom’s position as a key destination for Saudi investments. The implementation of this agreement represents a qualitative leap in activating the framework of financial, economic and tax cooperation between the GCC countries.
He explained that the Ministry of Finance aims to expand the network of bilateral double taxation avoidance agreements with the various countries of the world to implement the vision of the wise leadership of the state in diversifying sources of income and enhancing the development objectives of the state. These agreements contribute to the elimination of double taxation, facilitating cross-border trade and investment flows, Which would in turn boost the investment climate in the country and enhance the attractiveness of the state as a destination for foreign investment.
The value of investments of Saudi citizens and banks in the UAE during the year 2017 amounted to 17.08 billion dirhams, while the number of licenses economic activities granted to Saudi citizens in the UAE to 12.451 by the end of 2017 .. The volume of trade between the Kingdom of Saudi Arabia in 2017 to 32.93 billion dirhams .. The number of Saudi shareholders in the UAE joint stock companies to 118,878 during the same year .. The value of real estate transactions for Saudi citizens in the UAE 59 billion dirhams during 2017, where the total number of owners of real estate of Saudi citizens in the United Arab Emirates by 4.989 until the end of 20 17.