MoF signs two agreements on avoidance of double taxation

The Ministry of Finance, MoF, has signed two final agreements on the avoidance of double taxation and the protection and promotion of investment with Burundi.

The agreements came as part of the Ministry’s strategy to expand its international relations and to protect and promote Emirati investments.

The agreement was signed by Obaid Humaid Al Tayer, Minister of State for Financial Affairs and Domitien Ndihokubwayo, the Minister of Finance, Budget and Development Planning of Burundi, in the presence of Khalid Ali Al Bustani, Assistant Under-Secretary for International Financial Relations and a number of executives at the Ministry.

Al Tayer stressed the importance of signing similar agreements for UAE and its global investments. He also highlighted that the agreements provide full protection for taxpayers from direct and indirect double taxation, protection for national economy, diversification of the national income sources, in addition to encouraging trade and attracting foreign investments.

"The double taxation agreements provide exemption from taxes for national air carriers and government investments from the origin-based taxes. The agreements also exempt capital taxes and help in reducing tax burdens on the private sector’s investments," he added.

The second agreement works on protecting investments from non-commercial risks such as nationalisation, confiscation, judicial seizures, freezing assets, establishing licensed investments, and transferring profits and revenues in convertible currencies. The agreements on the protection and promotion of investments also provide national and MFN treatment, no interference on all investment related topics, fair and immediate compensation for the investor in case of seizures according to the law, without any form of discrimination and according to the market value of the investment.

The UAE has signed more than 103 agreements on the avoidance of double taxation, and more than 66 agreements to protect and promote investment with various countries, which provides a legal framework allowing tax authorities to cooperate without violating the sovereignty of other countries or the rights of tax payers. The agreements also strengthen and provide full protection for investments.