In line with the UAE’s efforts to enhance global financial relations, the Ministry of Finance (MoF) recently signed a double taxation avoidance agreement with Switzerland. The move reflects the UAE’s commitment to enhance economic relations and import and export activities between the two countries, in addition to improving trade through providing full protection from direct and indirect double taxation processes.
Signed by HE Younis Haji Al Khouri, Undersecretary of MoF and HE Wolfgang Amadeus Bruelhart. Ambassador of Switzerland to the UAE at MoF headquarters in Dubai, the agreement reflects the UAE’s efforts in supporting the free movement of factors of production, increasing investment opportunities, avoiding obstacles pertaining to mutual trade and investment activities and encouraging import and export between the two countries. The pact also aims to enhance mutual investments between the UAE and Switzerland, and to support the UAE’s development goals.
Commenting on the agreement, HE Al Khouri said: “The UAE has signed this agreement with Switzerland as part of its efforts to solidify joint financial and investment efforts with other countries, and to enhance its local economy. Not only do these agreements play a positive role in enhancing global ties, but they also provide benefits for citizens, companies, sovereign wealth funds, private and public companies, residents, and national state-owned air carriers, which are exempt from all taxes.”
HE Bruelhart added: “The singed agreement marks and important milestone in the partnership between our two countries and aims to enhance bilateral financial and economic relations. The UAE and Switzerland have previously also signed an agreement to protect and encourage investments between the two nations in 1998.”
The UAE has signed 57 similar agreements to date to enhance its regional and global position through creating opportunities for the growth of the public and private sectors, and to develop its air transport, trade and tourism industries to achieve sustainable social and economic growth.
Double Taxation Avoidance Agreements play an important part in allowing countries to implement their development strategies, diversify sources of income, and attract foreign investments. These agreements reflect developments witnessed in global financial and economic markets pertaining to taxation, transfer pricing methods, tax discrimination, and reduction of taxes on foreign investments. Furthermore, they provide policies and rules for monitoring the division of tax revenues between states, tax evasion practices, settling tax disputes, and provide a stable tax environment for foreign investors to increase international economic competitiveness.