The new UK-UAE Double Taxation Convention (the UK-UAE DTC) entered into force on 25 December 2016 and took effect (broadly) on 1 January 2017. It represents another welcome addition to the UAE’s burgeoning network of bilateral tax treaties.
The key points are as follows:
- The taxation of certain foreign direct investments from the UAE into the UK is now potentially far more favourable. The result is that the available range of tax-efficient investment opportunities has significantly increased for UAE investors.
- UAE nationals, and some non-UAE nationals based in the UAE, should now be able to spend more time in the UK without becoming UK tax resident.
- The UK-UAE DTC is helpful in providing more favourable and certain UK tax treatment for UAE nationals, and some non-UAE nationals based in the UAE, working temporarily in the UK.