Double Tax Treaty UAE - China

Double Tax Treaty UAE - China

Updated on Saturday 04th February 2017

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The United Arab Emirates (UAE) and China signed in 2014 a double tax treaty, which has as aim the counterbalancing of the taxes payed in one of the two countries by their adjustment in the other. A law firm in Dubai can assist you with applying the tax convention provisions at your business. You might be able to deduce some of the taxes that you have already payed, or you might be able to prevent future overpayment.

Key regulations provided by the tax convention between UAE and China

The tax convention between UAE and China refers mainly to the taxation of income. The treaty defines the conditions of taxation for salaries, pensions, self-employment and other sources of revenue. Some of the provisions of the double taxation treaty regulate the payment of the corporate tax and give the procedural frameworks for the taxation of the profits obtained from transportation, real estate and other sources. 
Another main purpose of the tax treaty between UAE and China is the elimination of tax evasion by increasing the efficiency of the cross-border trade. It is also a measure which intends to enforce the bilateral economic relations between the two countries, through mutual support. 
As a Chinese resident, if you open a company in Dubai, you will benefit from the advantages of the double taxation treaty and additionally from the local tax provisions in Dubai, sometimes referred to as a tax paradise. Nevertheless, all over the UAE the treaty grants tax minimization for all Chinese investors. 
Our attorneys in Dubai are ready to familiarize you with the benefic impact that the tax treaty between UAE and China might have on the revenues of your company.

How overtaxation is avoided through the tax convention between UAE and China

Some of the taxes charged on you in one of the two countries can be deduced from the relevant authorities in the country in which you are a tax resident. You can be offered a credit at the respective sum that you can subsequently use for further investments in your company. 
Another method of reducing taxation is the exemption which, according to the tax treaty, applies to capital gain or revenues from royalties or interests, dividends or personal services. 
You are also entitled to ask for a deduction in your country of residence for the payments you did to the foreign government based of your commercial activity in that country. 
Feel free to contact our law firm in Dubai for complete legal services and tax planning. By working with us you will make the most of the advantages provided by the tax treaty between UAE and China.