UAE and Venezuela ink avoidance of double taxation treaty

Abu Dhabi, June 8, 2010 (WAM)- The Ministry of Finance announced yesterday that it has signed an agreement of double taxation avoidance and tax evasion prevention on income and capital with Venezuela. This agreement is in line with UAE's efforts to strengthen financial relations with various foreign countries and supporting investment promotion and economic development and cooperation. This is the first such agreement signed by the UAE with a Latin American country and signals the start of negotiations with other countries of that continent.
The agreement enhances UAE's economic openness and assists freedom of production and financial flows. It also plays a key role in strengthening and developing economic relations and partnership between the two countries. It will have a positive impact on trade by encouraging import and export operations and increase investment opportunities.
The agreement covers all types of taxes on income and capital, namely taxes imposed on total income or on elements of income including taxes on gains from transferring the ownership of the movable and immovable properties. It also covers taxes on investments in public and private sectors and contains simplifies financial and tax benefits of air and sea carriers.
Like all double taxation avoidance agreements with countries that have strategic ties with UAE, this agreement will provide full protection to exchanged goods and services, in addition to facilitating capital movement. It is consistent with enhancing cooperation and developing economic relations and will have a positive impact on our macro-economy. – Emirates News Agency, WAM