UAE To Bolster Economic, Financial Ties With Slovakia

by Lorys Charalambous, Tax-News.com, Cyprus

27 July 2009

During the course of three-day convention held in the Slovak capital Bratislava, commencing on July 15, 2009. Delegations of both countries concluded an agreement for the promotion and protection of investments and agreed upon provisions in an imminent agreement for the avoidance of double taxation with respect to several taxes.

The convention for the protection, and promotion, of investments entails provisions for the protection of investments from non-commercial risks, such as nationalization and for judicial confiscation, seizure and freezing.

During the course of the meetings, the respective countries’ delegations agreed upon provisions to be included within a convention for the avoidance of double taxation. Thus far, the two countries have agreed provisions to include exemptions for federal government institutions and local taxes as well as exemptions from taxation on interest, dividends and capital gains. Further provisions, currently being negotiated, include, inter alia, exemptions for pension and investment funds, and air services.

In a statement after the event, Majid Omran, Director of International Relations at the Department of Finance and Chairman of the UAE’s delegation, lauded the signing of the agreement, stating: “[The agreement] is in tune with the vision of the Ministry of Finance to be a global leader in the management of financial resources, so as to achieve sustainable and balanced development.”

"We look forward to the completion of the negotiations and a final signature, which would benefit the two countries and further agreements on financial and economic cooperation with the countries."

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