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UAE, Hong Kong Initial DTA,
by Lorys Charalambous, Tax-News.com, Cyprus
Wednesday, July 28, 2010
The United Arab Emirates’ Ministry of Finance has announced that a double tax convention was initialled with Hong Kong on July 20.
Signatory for the agreement on behalf of the UAE, the Finance Ministry’s Director
General, Younis Haji Khouri explained that the agreement would contribute to the free
movement of capital in line with the Ministry’s aim to strengthen the
country’s financial relations globally. He
noted that double tax agreements, of which the UAE has 52, enhance the country’s investment climate, and contribute to its economic
development.
The double tax convention, when it enters into force, after it is signed and
ratified, will assign the taxing rights of the respective territories and ensure
that trade and investment between the two countries, undertaken by individuals
and businesses, are not taxed twice.
Bilateral economic activity is already well developed between the two territories,
according to Hong Kong’s Trade Development Council. Exports to the UAE
amounted to 54% of that exported to the Middle East during 2009, it said.
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