UAE Holds Final Round of Negotiations for Double Taxation Avoidance Agreement with the Russian
17 January 2024
The United Arab Emirates, represented by the Ministry of Finance, has successfully concluded the final round of negotiations for Double Taxation Avoidance Agreement on income and capital with the Russian Federation.
This milestone underscores the UAE's commitment to strengthening economic and tax cooperation, fostering a business-friendly environment that protects taxpayers’ rights, prevents double taxation, and promotes investment and the seamless flow of trade.
The discussions, held at the Ministry’s offices in Dubai, concluded with the initial signing of the draft agreement.
The UAE delegation was led by His Excellency Younis Haji Al Khoori, Undersecretary of the Ministry of Finance, with the participation of Shabana Aman Khan Begum, Executive Director of the Tax Policy Sector at the Ministry of Finance. The Russian delegation was headed by His Excellency Alexey Sazanov, Deputy Minister of Finance of the Russian Federation.
Fostering Confidence
The agreement aims to establish a stable and investment-friendly tax framework, eliminate tax barriers that may hinder investors, and prevent double taxation for individuals and businesses.
It is designed to enhance confidence among both foreign and domestic investors, encourage increased joint investments, and support efforts to strengthen economic and trade relations between the UAE and Russia. Additionally, it seeks to create new opportunities for economic growth, facilitate the exchange of expertise and technologies between institutions and companies in both nations, and promote sustainable trade and financial ties in the long term.
A Strategic Step Forward
His Excellency Younis Haji AlKhoori stated: “These negotiations are part of a series of efforts aimed at enhancing the investment environment and removing tax obstacles for individuals and businesses in both countries. Signing the double taxation avoidance agreement with Russia represents a strategic step towards strengthening the economic ties between the two nations. This agreement will provide a clear and stable legal framework that supports investors and stimulates trade exchange, fostering confidence and attracting both foreign and domestic investments.”
He added: “We are confident that this agreement will contribute to economic growth and open new avenues for cooperation across various fields. It also reflects the UAE’s commitment to providing a stable, investment-friendly tax environment, reinforcing its position as a preferred destination for international investors.”
It is worth noting that double taxation avoidance agreements provide numerous advantages, including enhancing developmental objectives and diversifying the nation’s income streams, preventing double taxation and tax evasion, and addressing challenges posed by cross-border trade and investment flows.
These agreements ensure comprehensive protection for individuals against double taxation, promote the free flow of trade, and foster investment opportunities. Furthermore, they consider global tax challenges, align with international developments, and support the exchange of goods and services while facilitating capital movement.
