The double taxation treaty between the UAE and Netherlands was signed in 2007 and then reviewed three years later. Such agreement was meant to eliminate the fiscal evasion by avoiding the double taxation on incomes for both companies and natural persons with activities in one of the two contracting states. Numerous taxes are covered by the double taxation agreement and we suggest you solicit complete information in this matter from our accountants in Dubai.
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Taxes covered by the DTT between the UAE and the Netherlands
The salaries, pensions, dividends, royalties, and interests are protected by the double taxation convention between the UAE and the Netherlands and will be levied only once, in the country where the activities are registered. It is good to know that the profits of companies from the UAE with activities that generate money from natural resources exploitation in the Netherlands shall be levied only in the UAE, also being available for Dutch companies with activities in the Emirates. The tax rate on dividends is 0% for companies under the UAE government.
We can provide payroll in Dubai if you own a business here. Payroll is not limited to the calculation and delivery of salaries in the company. Our specialists can also deal with personnel recruitment, as well as their registration, with the preparation of employment contracts. If you need statistical reports or termination filings, we are at your disposal. It is much more advantageous to outsource this type of service and benefit from affordable costs.
Moreover, we remind that companies from the Netherlands with permanent establishments in the UAE shall be levied on incomes only where the activities are performed. Businessmen interested in activities in the Emirates should solicit information about the taxation system in the country from our Dubai accountants who can also perform audits in Dubai, no matter if it’s a big or a small company involved.
Preferential taxes as stipulated by the UAE – Netherlands DTT
Dubai is an important business hub and preferred among foreign investors who want to benefit from tax reliefs. For instance, the withholding tax rate for dividends does not exceed a 10% rate, as mentioned by the double taxation convention between the UAE and the Netherlands. Furthermore, individuals from the Netherlands with work contracts in the UAE should know that there are no taxes on personal income. If there are profits registered in the home country, these are going to be levied in accordance with the law.
Additional details and information about the double taxation treaty between the UAE and the Netherlands can be obtained if you contact our accounting firm in Dubai.