The UAE has held a second round of negotiations with Russia to forge an agreement to avoid double taxation as the Emirates moves to enhance “friendly relations” with Russia.
The Ministry of Finance said it was keen to cooperate in areas of shared interest in critical sectors and reiterated the importance of continued coordination and constructive dialogue with the Russian Federation.
The federation has been subject to wide-ranging sanctions and travel bans by Western countries since the invasion of Ukraine began in February 2022.
On the sidelines of the meeting, Mohamed Bin Hadi Al Hussaini, UAE Minister of State for Financial Affairs, met with Alexey Sazanov, State Secretary, Deputy Minister of Finance of the Russian Federation, and Timur Zabirov, Ambassador of the Russian Federation to the UAE, to discuss partnership efforts to further enhance cooperation, growth and development between the UAE and Russia in areas of mutual interest.
After the negotiations, which were held at the ministry headquarters in Dubai, Younis Haji Al Khoori, Undersecretary of the Ministry of Finance, said the dialogues were important in bilateral relations between the two countries, especially in financial, trade and investment sectors, and to eliminate barriers that hinder economic cooperation between Russia and the UAE.
He added that the UAE has already signed 142 double taxation agreements.
Double taxation avoidance agreements
Countries sign the agreements to avoid businesses and individuals having to pay tax twice on the same income when trading or working between the two countries. The Ministry said the agreements also promote development goals, diversify national income sources, help prevent tax evasion and address challenges of cross-border trade and investment flows.
The UAE’s new corporate tax came into effect on June 1st, and the Ministry clarified last week that non-residents will be taxed on income from property.
There has been an outflow of Russian citizens leaving their home country since the start of the Ukraine war, particularly after widespread military mobilisation was announced by the Russian government. While neighbouring countries such as Georgia so the largest number of arrivals, data revealed that the number of one-way flights to Dubai doubled in the aftermath of the mobilisation.
Russians have also repeatedly made headlines due to their level of investment in Dubai properties since the war’s outbreak, however, experts told Zawya earlier this year, that while they are spending big on properties, they are not the key driver of sales.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)