Document background
Double Tax Avoidance Agreements are essential international treaties used to prevent the same income from being taxed twice in different jurisdictions. These agreements are particularly important in the UAE context given its position as a global business hub and its implementation of corporate tax. A DTAA provides certainty to businesses and individuals about their tax obligations, encourages international investment, and facilitates cross-border trade. The agreement typically covers various types of income including business profits, dividends, interest, and royalties, while also addressing modern business challenges such as e-commerce and digital services. It includes mechanisms for information exchange between tax authorities and dispute resolution procedures, aligned with both UAE federal law and international tax standards. The agreement becomes particularly relevant with the UAE's growing network of international tax treaties and its recent introduction of corporate tax.
