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PROTOCOL

At the signing today of the Agreement between the Principality of Liechtenstein and the United Arab Emirates for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, the undersigned have agreed that the following provisions shall form an integral part of this Agreement.

(1) For the purposes of Article 2 (Taxes Covered) and Article 23 (Elimination of Double Taxation):

It is understood that if a person who is a resident of a Contracting State is in accordance with this Agreement subject to Liechtenstein wealth tax on capital, the taxation of the notional income on such capital ("Sollertrag") is considered as personal income tax.

(2) For the purposes of Article 4 (Resident), Article 10 (Dividends), Article 11 (Interest) and Article 12 (Royalties):

It is understood that:

  • (a) the term "qualified government entities" includes:
    • (i) in case of Liechtenstein:
      • (1) any public enterprise that is established under the Law on the Control and Oversight of Public Enterprises;
    • (ii) in case of the United Arab Emirates:
      • (1) Central Bank of the United Arab Emirates;
      • (2) Abu Dhabi Investment Authority;
      • (3) Abu Dhabi Investment Council;
      • (4) Emirates Investment Authority;
      • (5) Mubadala Development Company;
      • (6) International Petroleum Investment Company (IPIC);
      • (7) Dubai World;
      • (8) Investment Corporation of Dubai;
      • (9) Abu Dhabi National Energy Company (TAQA); and
    • (iii) any other entity the capital of which is wholly or partially directly or indirectly owned by the federal or local Governments of either Contracting States, including a political subdivision and local authority thereof as may be agreed upon from time to time between the Governments of the Contracting States through notifications by the competent authorities;
  • (b) collective investment vehicles (investment funds), pension funds, and qualified government entities of a Contracting State are considered to be residents of that State;
  • (c) the term "collective investment vehicles (investment funds)" includes the following:
    • (i) in Liechtenstein, any investment fund according to the Law on Undertakings for Collective Investment in Transferable Securities (UCITS), the Law on Investment Funds, and the Law on Alternative Investment Fund Managers (AIFM);
    • (ii) in the United Arab Emirates, any collective investment vehicle established under the laws of the United Arab Emirates;
  • (d) the term "pension funds" includes the following:
    • (i) in Liechtenstein any pension fund or scheme covered by the Law on Old Age and Survivors' Insurance, the Law on Disability Insurance, the Law on Occupational Pension Funds, and the Pension Fund Act;
    • (ii) in the United Arab Emirates, the Abu Dhabi Retirement Pensions and Benefits Fund and the General Pension and Social Security Authority;
  • (e) the competent authorities may agree that collective investment vehicles and pension funds which are established under legislation introduced after the date of signature of this Agreement are to be considered as residents;
  • (f) Liechtenstein foundations, establishments, and trust enterprises taxable in Liechtenstein by virtue of paragraph 1 of Article 44 of the Liechtenstein Tax Act are considered as companies resident in Liechtenstein;
  • (g) an entity or organisation that is established and is operated exclusively for charitable, religious, humanitarian, scientific, cultural, or similar purposes (or for more than one of those purposes) and that is resident of that State according to its laws is considered as resident of that State, notwithstanding that all or part of its income or gains may be exempt from tax under the domestic law of that State.

(3) For the purposes of paragraph 5 of Article 13 (Capital Gains):

It is understood that paragraph 5 of Article 13 includes capital gains derived by a resident of a Contracting State from the alienation of shares in a company or of securities, bonds, debentures and the like as well as profits on a liquidation or redemption of shares and capital appreciation, other than those referred to in paragraph 4 of Article 13.

(4) Nothing in this Agreement shall prevent a Contracting State from granting exemption from tax or reduction in accordance to its domestic laws and regulations.

(5) For the purposes of Article 26 (Exchange of Information):

It is understood that:

  • (a) the information exchanged must not be disclosed to any other State or sovereign territory not party to this Agreement;
  • (b) personal data may be processed and transmitted to the extent necessary for the exchange of information according to Article 26;
  • (c) any request for information shall be in writing;
  • (d) the competent authorities shall agree on the mode of application of Article 26.

IN WITNESS WHEREOF, the undersigned, being duly authorised thereto by their respective Governments, have signed this Protocol.

DONE in duplicate at New York, this first day of October 2015, in three originals in the German, Arabic, and English languages, all texts being equally authentic. In case of divergence of interpretation the English text shall prevail.

FOR THE GOVERNMENT OF THE PRINCIPALITY OF LIECHTENSTEIN:

FOR THE GOVERNMENT OF THE UNITED ARAB EMIRATES: