Double Tax Treaty UAE-France

The United Arab Emirates and France have signed a double taxation agreement in 1989 in Abu Dhabi. The agreement was enforced in the summer of 1990 in both countries and compared to other UAE double taxation treaties, it was enacted for an indefinite period of time. The double taxation agreement applies to both French and UAE residents. Our specialists in Company registration in Dubai can provide you with more information regarding the taxation system in the UAE.

What taxes does the UAE-France double tax treaty cover?

According to the UAE-France double taxation agreement, the following taxes are covered:

  • The income tax, the corporate tax, the solidarity tax applied to natural persons and the inheritance tax in France,
  • The corporate tax and the income tax in the United Arab Emirates.

The agreement also covers other similar taxes whether they are applied before or after signing the convention. Any new tax enabled by one of the two signatory states will be added or replaced in the current double tax treaty between the UAE and France.

Incomes covered by the UAE-France double tax agreement:

Under the double taxation agreement signed by the UAE and France the income applies to the worldwide incomes of both French and UAE residents. The incomes covered by the agreement can result from the following activities:

  • Selling immovable property,
  • Salaries,
  • Investments,
  • Interests,
  • Royalties,
  • Independent professions,
  • Pensions,
  • Technical and management fees
  • Incomes resulted from Company’s oil exploitation and international traffic by sea or by air.

The UAE-France double taxation treaty also defines the term “permanent establishment” of a French or UAE Company and how their incomes will be taxed.

Tax rates under the UAE-France double taxation treaty

The following tax rates have been put in place by the UAE-France double taxation agreement:

  • A 0% tax rate for dividend payments,
  • A 0% tax rate for royalties payments,
  • A 0% tax rate for interest payments.

In case of taxation of other incomes, the avoidance of double taxation will occur by granting a credit against the tax paid in the other contracting party.

For complete information about the provisions of the double taxation treaty with France, please contact our Dubai experts in Company formation.