ARTICLE 22

Elimination of Double Taxation

(1) Insofar as Switzerland is concerned, double taxation shall be avoided as follows:

• (a) Where a resident of Switzerland derives income which, in accordance with the provisions of the Convention, may be taxed in the United Arab Emirates, Switzerland shall exempt such income from tax, subject to the provisions of sub-paragraphs (b) and (c), but it may, for calculating the amount of tax on the remaining income of that resident, apply the same rate as if the income in question had not been exempted. However, this exemption shall only apply to gains referred to in paragraph (4) of Article 13 after the justification of taxation of such gains in the United Arab Emirates.
• (b) Where a resident of Switzerland derives dividends which, pursuant to the provisions of Article 10, are to be taxed in the United Arab Emirates, Switzerland shall grant a relief to such resident upon request. The relief shall consist of:
  • (i) a deduction of the tax paid in the United Arab Emirates in accordance with the provisions of Article 10 from the tax levied on the income of that resident; the amount of deduction shall not however exceed the portion of the Swiss tax, calculated prior to the deduction corresponding to taxable income in the United Arab Emirates, or
  • (ii) a flat rate reduction from the Swiss tax, or
  • (iii) a partial exemption of the dividends in question from Swiss tax, but at least a deduction of the tax paid in the United Arab Emirates from the gross amount of the dividends.
• Switzerland shall determine the applicable relief and shall regulate the procedure in accordance with the Swiss provisions relating to the implementation of international conventions concluded by the Confederation for the avoidance of double taxation.
• (c) Where a resident of Switzerland derives income referred to in Article 18, Switzerland shall grant, upon request, a deduction from the Swiss tax levied on this income equal to the tax levied in the UAE in accordance with Article 18 of this Convention, this deduction may however not exceed the portion of the Swiss tax, as calculated before the deduction is granted on this taxable income in the United Arab Emirates.
• (d) A company which is a resident of Switzerland and receives dividends from a company which is a resident of the United Arab Emirates shall be entitled, for the application of Swiss tax levied on such dividends, to the same advantages as those which would be granted if the company paying the dividends were a resident of Switzerland.

(2) Insofar as the United Arab Emirates is concerned, double taxation shall be avoided as follows:

• Where a resident of the UAE derives income which in accordance with the provisions of the Convention may be taxed in Switzerland, the United Arab Emirates shall grant a deduction of an amount equal to the income tax paid in Switzerland.