Double tax treaty UAE – Austria

Double tax treaty UAE – Austria

Updated on Thursday 19th January 2017

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The double tax treaty between UAE and Austria, effective from 2005, is a convention which regulates the taxation of income for companies which conduct businesses in one or both of the countries. The signing of the convention between Austria and the UAE denotes a strong economic relation between the two countries, and their intention to develop long term cooperation. Our Dubai attorneys can guide you through the implementation of the treaty’s provisions for the benefit of your own company.

The main provisions of the double tax treaty between UAE and Austria 

The provisions of the treaty refer to the persons which are residents in one of the two countries. In both Austria and the UAE, the treaty applies principally to income and corporation tax and also to similar taxes which might be imposed later on in either country. 
The tax convention between UAE and Austria provides that the local profit may be subject to local taxation. This means that if a company has a permanent establishment in Austria or the UAE, the company can pay the income tax in the country where it conducted its activity. The permanent establishment is defined by the treaty as one of the following:
  • the place of management;
  • a branch;
  • an office;
  • a mine;
  • a factory or workshop. 
The commercial activities carried on through intermediaries (such as brokers or independent agents) are not considered as potential activities for the recognition of a permanent establishment. 
A company which might fall under the regulations of the tax convention between UAE and Austria might need professional legal advice in order to make use of its rights and benefits provided by the treaty. Our Dubai lawyers are ready to give you legal counseling suitable to your particular situation. 

Profits covered by the tax convention between the UAE and Austria 

Apart from the company tax and business profits, the treaty includes income resulted from the sale of real estate. 
The profits obtained from shipping and air transport make a separate article of the convention between the UAE and Austria, which regulates that profits, interests, and dividends obtained from the operation of aircrafts or ships in the international traffic fall under the provisions of the convention.
The treaty covers as well individual revenues such as salaries, pensions and director’s fees, which can be as well taxed locally, in the country where the activity was performed. 
We kindly invite you to contact our law firm in Dubai for complete legal assistance in issues regarding the double tax treaty between the UAE and Austria.