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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.

ARTICLE 22

Elimination of Double Taxation

(1) In Spain, double taxation shall be avoided following either the provisions of its internal legislation or the following provisions in accordance with the internal legislation of Spain:

  • (a) Where a resident of Spain derives income or owns elements of capital which, in accordance with the provisions of this Convention, may be taxed in The United Arab Emirates, Spain shall allow:
    • (i) as s deduction from the tax on the income of that resident, an amount equal to the income tax paid in The United Arab Emirates;
    • (ii) as a deduction from the tax on the capital of that resident, an amount equal to the tax paid in The United Arab Emirates on the same elements of capital;
    • (iii) the deduction of the underlying corporation tax shall be given in accordance with the internal legislation of Spain.
  • Such deduction shall not, however, exceed that part of the income tax or capital tax, as computed before the deduction is given, which is attributable, as the case may be, to the income or the same elements of capital which may be taxed in The United Arab Emirates.
  • (b) Where in accordance with any provision of the Convention income derived or capital owned by a resident of Spain is exempt from tax in Spain, Spain may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital.

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

Where a resident of The United Arab Emirates derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in Spain, The United Arab Emirates shall allow:

  • () as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in Spain;
  • (b) as a deduction from the tax on the capital of that resident, an amount equal to the capital tax paid in Spain.

Such deduction in either case shall not, however, exceed that part of the income tax or capital tax, as computed before the deduction is given, which is attributable, as the case may be, to the income or the capital which may be taxed in The United Arab Emirates.