A double tax treaty was signed in 1993 between the United Arab Emirates (UAE) and France in order to avoid overtaxation of the economic agents in the two countries. You can explore the main provisions and advantages of the tax convention by employing the legal services of a law firm in Dubai.
The main provisions of the convention between UAE and France
The provisions of the double tax treaty refer to natural as well as to juridical persons residents of either of the two countries. The treaty regulates taxation imposed on income or succession. It refers as well to company tax and to gains obtained from real estate, transportation and other sources.
The treaty clarifies the notion of resident, by reference to the possession of a permanent lodging. Another criterion for establishing the beneficiaries of the treaty is the notion of permanent establishment which implies that the company should have in one of the two countries either a management office, or a subsidiary, a warehouse, a mine, or another type of office or establishment for at least six months in advance.
The double tax treaty between UAE and France subsequently describes in detail each type of revenue and regulates the taxation issues regarding each of them. Our attorneys in Dubai can help you explore even further the details and legal implications of the tax convention.
How the UAE – France tax treaty prevents overtaxation
The tax convention between UAE and France provides that a French resident should pay in the UAE the taxes afferent to the income obtained in the Emirates. These taxes cannot be deduced from the ones which the French resident must pay in France, but they can be covered by a credit that the French resident has the right to receive. The credit cannot surpass the tax amount that the same revenue would have generated in France
Similarly, a resident of the UAE who has revenues from a French company or from a company with at least 50 percent French ownership is obliged to pay his revenue taxes in France.
Feel free to rely on our law firm in Dubai where you will find all the needed information regarding the advantages that the UAE and France tax treaty may bring to your company. Contact us to benefit from the trustworthy legal advice of our Dubai lawyers.