Double Tax Treaty UAE – Czech Republic
Double Tax Treaty UAE - Czech RepublicUpdated on Thursday 23rd March 2017
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If you are a resident and you conduct business activities in one of the two countries, then you can profit from the double tax treaty signed between the UAE and the Czech Republic. Moreover this convention grants stronger economic relationships between the two economies, thus allowing for a much more flexible framework for commercial activities. Our lawyers in Dubai can provide a wide range of legal services among which you may find tax consultancy regarding the double taxation treaty UAE - Czech Republic.
What revenues enter the provisions of the tax convention between UAE and Czech Republic
The tax convention between UAE and Czech Republic refers to capital revenues as well as to income from property or other wages, such as dividends, interests and royalties. Salaries and pensions enter as well in the frame of the treaty.
The main novelty that is brought by the tax convention between UAE and the Czech Republic is the avoidance of over taxation. Accordingly, the income tax, the corporation tax and the tax on real estate are only charged in one of the two countries.
Even if you conduct activities in both countries, through permanent establishments, according to the treaty, you can benefit from a credit in your country of residence, which will cover the over costs charged on you for the profits gained in the other country. Apart from the credit exemption method, there are as well other methods which prevent the overcharging of business owners. You might as well benefit from reduced rates of the taxes.
Our law firm in Dubai remains at your disposal with information and legal assistance regarding the taxation rules that apply to your business income from Czech Republic or UAE.
Advantages of the tax convention between UAE and Czech Republic
The main advantage of the tax convention between UAE and Czech Republic is the avoidance of the double taxation of companies. This desiderate is implemented through several counterbalancing methods, such as the offering, in the state of residency, of a credit equivalent with the taxes charged in the income source state.
The tax treaty between UAE and Czech Republic manages to keep a balance on the taxation methods for capital gains but not only. Other sources of income are included as well in the convention, such as revenues originating from salaries, pensions, self-employment, transportation and real-estate.
Special taxation rules apply to certain regions of UAE, such as Dubai free zones. The city provides a unique economic climate and taxation framework, thus attracting big foreign investments. The tax convention reduces tax evasion and encourages trust and trading between the two countries.
You are more than welcome to contact our attorneys in Dubai regarding any issues concerning the double taxation treaty between Czech Republic and UAE.