Greek finance minister and his UAE homologue have signed in June 2013 a convention which aims at reducing the over taxation of companies and other legal entities operating in the two countries. The two governments have implemented the “credit method” in order to eliminate the potential of double taxation. Investors in Dubai are welcome to discuss with our Dubai lawyers the implication of the double tax convention between Greece and UAE.
The provisions of the double tax convention between UAE and Greece
According to the provisions of the treaty signed between UAE and Greece, the two countries have adopted the credit method as a measure which can reduce the tax burden on the commercial agents. Through this method, the income obtained by a company resident in Greece is taxed less by the Greek authorities for the part obtained abroad. The reduction applied amounts to the taxes that the company has paid in the other country. The credit method is implemented by many governments worldwide and has proven everywhere its efficiency in the reduction of over taxation.
The taxation conditions in Dubai are even more advantageous than in other places in the UAE. Recognized as a fiscal haven for the foreign investors, Dubai authorities have adopted special taxation measures. In the free zones of the city, the corporate tax and income tax is 0%. The provisions of the double tax treaty between Greece and the UAE refer to income tax, wealth tax and corporate tax, which are charged only once to those companies which make proof of a permanent establishment in one of the two countries.
Our law firm in Dubai is ready to provide to investors professional tax planning services and complete information on the tax treaty between Greece and UAE.
More provisions of the double tax treaty between Greece and UAE
The tax convention between UAE and Greece improves the economic climate for investors who intend to extend their trade activities in one of the two countries. The aim of the treaty is therefore to strengthen the bilateral relations between the two states. The provisions of the tax treaty apply not only to companies but also to individual persons. The profits obtained from salaries, pensions or properties are taxed in advantageous conditions. Moreover, to interests, dividends and royalties are applied reduced rates, according to the provisions of the double tax treaty UAE-Greece.
Whether you intend to develop your commercial activity in one of the two countries, we kindly invite you to contact our attorneys in Dubai for complete legal assistance in the UAE.