The Ministry of Foreign Affairs (MoFA) yesterday exchanged diplomatic memos with the Embassy of Japan on the implementation of the Double Taxation Avoidance Agreement (DTAA) and Prevention of Fiscal Evasion with respect to taxes on income in Abu Dhabi.
The exchange of diplomatic memos confirms that both countries have completed the local procedures to enable enforcement of the agreement with effect from 24th December, 2014.
The DTAA was signed on 2nd May, 2013, in the presence of Vice President and Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, His Highness Sheikh Abdullah bin Zayed Al Nahyan, Foreign Minister and Shinzo Abe, the Prime Minister of Japan.
The agreement will streamline the tax rights between the UAE and Japan in order to avoid international double taxation that results from the exchange in the fields of economy and human resources.
It sets the tax rates imposed by the source country on interest and revenue. The move reflects the depth of the economic relations between the UAE and Japan, and will enhance mutual investments.
The agreement is also expected to bolster the relations in the fields of economy and human resources between the two countries and strengthen and contribute towards measures to prevent fiscal evasion.
Source : WAM News Agency for United Arab Emirates
