The UAE’s Ministry of Finance on Sunday announced that the avoidance of double taxation agreement signed with Saudi Arabia has come into force after completing requisite procedures, according to a statement.
In May 2018, the two GCC nations signed a deal on the avoidance of double taxation on income and capital and the prevention of tax evasion at the Saudi Ministry of Finance in Jeddah.
The deal aims to enhance cooperation in tax matters and strengthen the financial, economic, and investment partnership between the two Arab countries.
The UAE’s finance ministry plans to “expand the network of bilateral double taxation avoidance agreements with various countries around the world,” the ministry’s undersecretary, Younis Haji Al Khoori, said.
“These agreements contribute to the elimination of double taxation, facilitate cross-border trade and investment flows, and provide protection to taxpayers from direct and indirect double taxation,” Al Khoori added.
In 2017, investments of Saudi citizens and banks in the UAE reached AED 17.08 billion, while the number of economic activity licences provided to Saudi citizens in the UAE hit 12,451.
In addition, trade between Saudi Arabia and the UAE totalled AED 32.93 billion in 2017, whereas the number of Saudi shareholders in the UAE joint stock firms amounted to 118,878 in the same year, according to official statistics.