Definition

A Double Taxation Treaty (DTT) is an agreement between the UAE and another country that prevents income from being taxed twice — once in each jurisdiction.

Key points

• The UAE has over 140 active treaties worldwide.
• Benefits include reduced or eliminated withholding tax.
• Requires a Tax Residency Certificate (TRC) to claim benefits.
• Applies to both individuals and corporations.

Practical example

A UAE company receiving dividends from France uses a DTT to avoid paying tax in both countries.

Why it matters

Double Taxation Treaties promote cross-border business and investment by ensuring fair taxation.