background image

Burundi - Untd A Emirates Tax Treaty (2017, not yet in force) — Orbitax Tax Hub

Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.


At the signing today of the Convention between the Government of the United Arab Emirates and the Republic of Burundi for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income, the undersigned have agreed upon the following provisions, which shall form an integral part of this Convention:

(1) With reference to paragraph 1 of Article 5 (Residence):

  • (i) It is understood that an investment fund and a pension fund or scheme of a Contracting State are considered to be residents of that State.
  • (ii) The term “investment fund” means an investment fund, arrangement or entity of a Contracting State which the competent authority of the Contracting State agrees to regard as a collective investment vehicle for the purpose of this paragraph,
  • (iii) The term “pension fund or scheme” means any plan, scheme, fund, trust, or other arrangement which, is generally exempt from tax and operated principally either to administer or provide pension or retirement benefit or to earn income for the benefit of one or more such arrangements.

In particular:

  • (a) in the case of the United Arab Emirates, the Abu Dhabi Retirement Pensions and Benefits Fund and the General Pension and Social Security Authority;
  • (b) in the case of The Republic of Burundi, a pension fund or scheme within the meaning of the Law Regulating the activity of Insurance companies of 11 May 1989 and any other law or regulation that may develop or modify this law in the future;
  • (c) any other pension fund or scheme of a Contracting State which the competent authority of the Contracting State agrees to regard as a pension fund or scheme for the purpose of this paragraph.

(2) With reference to Article 26 (Exchange of Information):

  • (i) Requests for information made under the Convention shall be processed as provided in the Convention, in accordance with the guidelines contained in the following provisions:
    • (a) it is understood that the standard of “foreseeable relevance” is intended to provide for exchange of information in tax matters to the widest possible extent and, at the same time, to clarify that the Contracting States are not at liberty to engage in “fishing expeditions” or to request information that is unlikely to be relevant to the tax affairs of a given taxpayer.
    • Requests for information should be as detailed as possible, including the following information:
      • (1) the identity of the person under examination or investigation. This information may include the name or other information sufficient to identify the taxpayer;
      • (2) the period to which the request of information refers;
      • (3) a statement of the information sought including its nature and the form in which the requesting State wishes to receive the information;
      • (4) the tax purpose for which the information is sought;
      • (5) the reasons why the information requested is foreseeably relevant for carrying out the provisions of the Convention or to the administration or enforcement of the tax laws of the requesting State in regard to the person identified in sub-paragraph (i) of this paragraph;
      • (6) grounds for believing that the information requested is held in the requested State or is in the possession or control of a person within the jurisdiction of the requested State or can be obtained by such person;
      • (7) to the extent possible, the name and address of any person believed to be in possession or having under control the information requested;
      • (8) a statement that the request is in conformity with the laws and administrative practices of the requesting State, and that the requesting State is authorised to obtain the information under the laws of the requesting State or in the normal course of administrative practice in similar circumstances, in response to a valid request of a Contracting State under the Convention;
      • (9) a statement that the requesting State has pursued all means available in its own territory to obtain the information, except those that would give rise to disproportionate difficulties.
      • The above requirements contain procedural requirements that must be interpreted with a view not to frustrate effective exchange of information.
    • (b) The rights and safeguards secured to persons in a Contracting State remain applicable in that Contracting State in the course of the process of information exchange.
    • (c) Information provided to a requesting State in accordance with the Convention shall not be disclosed to any authority of a third State or jurisdiction.
    • (d) Requests for information may be made in relation to taxable periods beginning on or after 1 January of the calendar year next following the year in which the Convention enters into force or, where there is no taxable period, for all taxes arising on or after 1 January of the calendar year next following the year in which the Convention enters into force.
  • (iii) The Republic of Burundi will be ready to exchange information automatically as soon as it has effectively adopted the common standard of the OECD concerning the automatic exchange of financial information under a bilateral or multilateral agreement for the full implementation of Article 25 of the Convention.

(3) With reference to Article 27 (Income of Government and Institutions):

  • (i) For the purpose of Article 27, the following institutions are included:
    • (a) Central Bank of the United Arab Emirates;
    • (b) Abu Dhabi Investment Authority;
    • (c) Abu Dhabi Investment Council;
    • (d) Emirates Investment Authority;
    • (e) Mubadala Development Company;
    • (f) International Petroleum Investment Company (IPIC);
    • (g) Dubai World;
    • (h) Investment Corporation of Dubai;
    • (i) Abu Dhabi National Energy Company (TAQA);
    • (j) MASDAR;
    • (k) Abu Dhabi Financial Group.

Also, those institutions which from time to time will be created by the Federal or the local governments of the UAE which fulfill the requirements of this article, subject prior notification by the competent authority of the United Arab Emirates to the competent authority of The Republic of Burundi.

IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Protocol.

DONE in duplicate at Abu Dhabi this day of 6/2/2017, in the Arabic, French and English languages, each text being equally authentic. In case of divergence of interpretation the English text shall prevail.