Israel and UAE sign tax treaty in latest normalisation step

Israel and the United Arab Emirates have signed a double taxation treaty, Israel’s Finance Ministry said on Monday, the latest move to normalise ties less than a year after the countries signed a historic accord.

The agreement will accelerate the development of economic relations and contribute to prosperity in both countries, Israeli Finance Minister Israel Katz said on Twitter.

חתמתי כעת על הסכם אמנת המס עם עובייד חומייד אל טייאר, שר האוצר של איחוד האמירויות. זהו הסכם היסטורי אשר ימריץ את פיתוח הקשרים הכלכליים בין המדינות ויתן ודאות ותנאים מוטבים לפעילות עסקית ענפה. הסכם זה יתרום להמשך השגשוג הכלכלי של מדינת ישראל, האמירויות, והאזור כולו. 🇦🇪🇮🇱 pic.twitter.com/74TFD8spUa

— ישראל כ”ץ Israel Katz (@Israel_katz) May 31, 2021

The agreement adds to a string of accords signed between the two countries. Treaties for the avoidance of double taxation are bilateral agreements in which the contracting states establish rules that will apply to income and assets that are connected to the two countries, according to the Finance Ministry’s website.

The Israel-UAE agreement also refers to the exchange of information between the two nations. The treaty is subject to approval by Israel’s parliament and cabinet, and is expected to go into effect on January 1, 2022. Israel is party to 58 double taxation treaties, the Finance Ministry said.