Luxembourg And UAE Conclude Double Tax Agreement

by Lorys Charalambous, Tax-News.com, Cyprus

23 November 2005

Government officials from the United Arab Emirates and Luxembourg have put their signatures to a new double taxation avoidance agreement intended to boost bilateral trade and investment between the two states.

In a signing ceremony held in Dubai on Sunday, Dr Mohamed Khalfan bin Khirbash, UAE Minister of State for Finance and Industry, and Jeannot Krecke, Luxembourg's Minister of Economy and Foreign Trade put their names to the agreement, which aims to prevent the double taxation of businesses and tighten up rules preventing tax evasion.

The ceremony was also attended by the Grand Duke Henry of Luxembourg and Hamad Abdul Rahman Al Madfaa, Minister of Health.

Welcoming the agreement, Dr Mohamed Khalfan bin Khirbash observed that:

"This agreement will help provide equal taxation treatment to investors in the UAE and Luxemburg. Moreover, it provides an environment that stimulates foreign direct investment, encourages business ventures, and enhances the cooperation along with the economic growth levels within the two countries. Further, it contributes new common projects that benefit the national economic outcomes of the two countries."

"Moreover, the agreement encourages tourism and bilateral trade between the two countries especially after the implementation of income and profit tax exemption regulations granted to national air cargo companies. Emirates airlines, Al Ittihad, Air Arabia, and any air transportation company will benefit from such exemptions."

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