Double Tax Treaty UAE - Belgium

Double Tax Treaty UAE - Belgium

Updated on Thursday 09th March 2017

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The tax convention signed between Belgium and the UAE provides advantageous conditions for investors in these two countries. The commercial partnership between UAE and Belgium functions already since 1996 and it is meant to increase the collaboration of the two countries. Our law firm in Dubai can instruct you on the provisions of the UAE-Belgium tax treaty, so that you can apply and benefit of its provisions in your business.

Main provisions of the tax convention between UAE and Belgium


Some of the most important provisions of the tax convention between UAE and Belgium refer to the taxation of dividends, interests and royalties. According to the convention, these types of revenues benefit from reduced rates. For the owners of more than 25% of the shares in a company, the tax on dividends rises to 5% and remains at 10% for the rest. The interests and royalties are also taxed, but with no more than 5%.

The tax convention between Belgium and the UAE has been renewed in 2010 and some new provisions have been adopted. Such a novelty was the introduction of alternative tax exemption methods like the credit method. 
One of the main novelties of the 2010 amendments to the treaty between UAE and Belgium was the introduction of the credit method as an alternative for tax exemption. This method means that an investor can receive a credit in his home country on the base of the taxes he payed in the source state of his income. This is an efficient way to avoid double taxation and to counterbalance the taxes payed in one state by the reception of a credit in the other. 
Our attorneys in Dubai can assist you with more information regarding the provisions of the tax treaty between Belgium and UAE.

Advantages of the tax convention between UAE and Belgium


The convention between UAE and Belgium intends to balance not only revenues of companies, but also those revenues originating from salaries, pensions, self-employment and other sources. Moreover, transportation and real-estate income falls as well under this convention.

If you intend to invest in Dubai it is worth to consider the existence of a special taxation regime in the city’s free zones. 
Some of the most obvious reasons and advantages of the tax convention between these two states is the reduction of tax evasion and the maintenance of a clear and clean cross-border trade. 
Moreover the main advantage of this treaty is that it protects the investment agreements between the two countries, thus supporting the economic relations between Belgium and the UAE.
Please contact our Dubai lawyers regarding any issues related to the double taxation treaty between Belgium and UAE. They can provide information on the provisions of the treaty and they can guide you on their application to your business activity.