UAE and Serbia sign double taxation agreement

Abu Dhabi, Jan 15, 2012 (WAM) - In line with its efforts to enhance economic, trade and tourism ties between the UAE and the Republic of Serbia, the Ministry of Finance (MoF) signed an agreement yesterday to avoid double taxation on income between both countries at the Ministry's headquarters in Abu Dhabi. The Republic of Serbia enjoys a strong financial climate and is known to attract many global investments. The agreement was signed by Obaid Humaid Al Tayer, Minister of State for Financial Affairs, and Mladan Dinkic, Minister of Finance and Economy of Serbia, in presence of Younis Haji Al Khouri, Undersecretary of MoF, the Serbian Secretary General of the Ministry of Finance and the accompanying Serbian delegation. The agreement includes a range of incentives and tax transaction mechanisms to grant multi-state exemptions on the UAE's investments in both public and private sectors. The agreement also provided export tax exemptions and tax benefits on capital gains. This initiative will contribute to strengthening the partnership between both countries by reducing the operational cost of their investments, especially since the agreement operates according to the principle of applying taxes in the country of residence rather than the source country. A meeting was held after the signing of the agreement in the presence of the delegations, where they discussed economic and trade relations and methods of developing them to include all areas of common interest, particularly in the area of investments. - Emirates News Agency, WAM