15 December 2016
The new income tax treaty between Romania and the United Arab Emirates entered into force on 11 December 2016. The treaty, signed 4 May 2015, replaces the 1993 tax treaty between the two countries.
The treaty covers Romanian tax on income and tax on profit and covers U.A.E. income tax and corporation tax.
The provisions of Articles 10 (Dividends), 11 (Interest), and 12 (Royalties) will not apply if the main purpose or one of the main purposes of any person concerned with the creation or assignment of the shares, debt-claims, or other rights in respect of which the income is paid was to take advantage of those Articles by means of that creation or assignment. The limitation is included in each of the Articles.
The following capital gains derived by a resident of one Contracting State may be taxed by the other State:
Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.
Both countries generally apply the credit method for the elimination of double taxation.
The new tax treaty applies from 1 January 2017. The 1993 tax treaty between the two countries is terminated and ceases to have effect from that date.
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