S.I. No. 20/2011 - Double Taxation Relief (Taxes on Income and Capital Gains) (United Arab Emirates) Order 2011. Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Ais

Article 8shall apply.

1. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment situated in that other State, nor subject the companys undistributed profits to a tax on the companys undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State. Article 12 Interest
2. Interest arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State if such resident is the beneficial owner of the interest.
3. The term “interest” as used in this Article means income from debtclaims of every kind, whether or not secured by mortgage, and whether or not carrying a right to participate in the debtors profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures as well as all other income treated as income from money lent by the laws of the State in which the income arises. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article.
4. The provisions of paragraph 1 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment situated therein and the debtclaim in respect of which the interest is paid is effectively connected with such permanent establishment.

Article 8shall apply.

1. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debtclaim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the lastmentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention. Article 13 Royalties
2. Royalties arising in a Contracting State and beneficially owned by a resident of the other Contracting State shall be taxable only in that other State.
3. The term “royalties” as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work (including cinematographic films and recordings on tape or other media used for radio or television broadcasting or other means of reproduction or transmission), any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience.
4. The provisions of paragraph 1 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise through a permanent establishment situated therein and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment.

Article 8shall apply.

4. Royalties shall be deemed to arise in a Contracting State where the payer is a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the liability to pay the royalties was incurred and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment is situated. 5. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the lastmentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention. Article 14 Capital Gains 1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 7 and situated in the other Contracting State may be taxed in that other State. 2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise), may be taxed in that other State. 3. Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic, or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that State. 4. Gains derived by a resident of a Contracting State from the alienation of shares, other than shares quoted on a recognised stock exchange, deriving more than 50 per cent of their value directly or indirectly from immovable property situated in the other Contracting State may be taxed in that other State. 5. Gains from the alienation of any property, other than that referred to in paragraphs 1, 2, 3 and 4, shall be taxable only in the Contracting State of which the alienator is a resident. 6. The provisions of paragraph 5 shall not affect the right of a Contracting State to levy, according to its law, a tax on gains from the alienation of any property derived by an individual if he is a resident of the other Contracting State and has been a resident of the first-mentioned State at any time during the five years immediately preceding the alienation of the property. Article 15 Income from Employment 1. Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the firstmentioned State if: (

1. a)the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the fiscal year concerned, and (
2. b)the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and (
3. c)the remuneration is not borne by a permanent establishment which the employer has in the other State. 3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that Contracting State. 4. An individual who is both a national of a Contracting State and an employee of an enterprise of that Contracting State whose principal business consists of the operation of aircraft in international traffic and who derives remuneration in respect of duties performed in the other Contracting State, shall be exempt from tax in that other State on remuneration derived from his employment with that enterprise for a period of four years beginning on the date on which he first performs duties in that other State. Article 16 Directors Fees Directors fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State. Article 17 Artistes and Sportspersons 1. Notwithstanding the provisions of Articles 8 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State. 2. Where income in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of Articles 8 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised. 3. The provisions of paragraphs 1 and 2 shall not apply to income derived by entertainers or sportsmen who are residents of a Contracting State from personal activities as such exercised in the other Contracting State, if their visit to that other Contracting State is substantially supported from the public funds of the first-mentioned Contracting State, including those of any political subdivision, a local authority or statutory body thereof. Article 18 Pensions and Annuities 1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment and any annuity paid to such a resident shall be taxable only in that State. 2. The term “annuity” means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time under an obligation to make the payments in return for adequate and full consideration in money or moneys worth. Article 19 Government Service 1. (
4. a)Salaries, wages and other similar remuneration paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority in the discharge of functions of a governmental nature shall be taxable only in that State. (
5. b)However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: (
6. i)is a national of that State; or (
7. ii)did not become a resident of that State solely for the purpose of rendering the services. 2. (
8. a)Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration paid by, or out of funds created by, a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority in the discharge of functions of a governmental nature shall be taxable only in that State. (
9. b)However, such pensions and other similar remuneration shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State. 3. The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages, pensions and other similar remuneration in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof. Article 20 Students 1. Payments which a student or business apprentice who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the firstmentioned State solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State. 2. A student or business apprentice referred to in paragraph 1 shall in respect of remuneration received in respect of services performed in the Contracting State first-mentioned in paragraph 1, be entitled in that other State to the same exemption and marginal relief from income tax as applies to such a person who is a resident of that Contracting State. Article 21 Other Income 1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State. 2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 7, if the beneficial owner of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein and the right or property in respect of which the income is paid is effectively connected with such permanent establishment.

Article 8shall apply.

Article 22 Elimination of Double Taxation 1. Subject to the provisions of the laws of Ireland regarding the allowance as a credit against Irish tax of tax payable in a territory outside Ireland (which shall not affect the general principle hereof)— (

1. a)United Arab Emirates tax payable under the laws of the United Arab Emirates and in accordance with this Convention, whether directly or by deduction, on profits, income or gains from sources within the United Arab Emirates (excluding in the case of a dividend tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any Irish tax computed by reference to the same profits, income or gains by reference to which United Arab Emirates tax is computed; (
2. b)in the case of a dividend paid by a company which is a resident of the United Arab Emirates to a company which is a resident of Ireland and which controls directly or indirectly 5 per cent or more of the voting power in the company paying the dividend, the credit shall take into account (in addition to any United Arab Emirates tax creditable under the provisions of subparagraph (a)) United Arab Emirates tax payable by the company in respect of the profits out of which such dividend is paid. 2. In the case of the United Arab Emirates, double taxation shall be eliminated as follows: Where a resident of the United Arab Emirates derives income or gains which in accordance with the provisions of this Convention may be taxed in the other State, the United Arab Emirates shall exempt such income and gains from tax. 3. For the purposes of paragraphs 1 and 2 profits, income and capital gains owned by a resident of a Contracting State which may be taxed in the other Contracting State in accordance with this Convention shall be deemed to be derived from sources in that other Contracting State. 4. Where in accordance with any provision of the Convention income derived by a resident of a Contracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income. 5. Where, under any provision of this Convention, income or gains is or are wholly or partly relieved from tax in a Contracting State and, under the laws in force in the other Contracting State, an individual, in respect of the said income or gains, is subject to tax by reference to the amount thereof which is remitted to or received in that other State, and not by reference to the full amount thereof, then the relief to be allowed under this Convention in the firstmentioned State shall apply only to so much of the income or gains as is remitted to or received in that other State. Article 23 Mutual Agreement Procedure 1. Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention. 2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States. 3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention. 4. The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. Article 24 Exchange of Information 1. The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Articles 1 and 2. 2. Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. 3. In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation: (
3. a)to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State; (
4. b)to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; (
5. c)to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information the disclosure of which would be contrary to public policy (ordre public). 4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information. 5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person. Article 25 Members of Diplomatic Missions and Consular Posts Nothing in this Convention shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements. Article 26 Entry into Force 1. Each of the Contracting States shall notify to the other the completion of the procedure required by its law for the bringing into force of this Convention. 2. This Convention shall enter into force on the date of receipt of the later of these notifications and shall thereupon have effect: (
6. a)in Ireland: (
7. i)as respects income tax, the income levy and capital gains tax, for any year of assessment beginning on or after the first day of January of the year in which this Convention enters into force; (
8. ii)as respects corporation tax, for any financial year beginning on or after the first day of January of the year in which this Convention enters into force; (
9. b)in the United Arab Emirates: (
10. i)in respect of taxes withheld at source, for amounts paid or credited on or after the first day of January of the year in which this Convention enters into force; (
11. ii)in respect of other taxes, for taxable periods beginning on or after the first day of January of the year in which this Convention enters into force. 3. Notwithstanding paragraph 2, upon the entry into force of this Convention, the provisions of Article 9 shall have effect as respects any Irish tax or United Arab Emirates tax falling due on or after the 12th day of June, 2009. Article 27 Termination This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention at any time after five years from the date on which the Convention enters into force provided that at least six months prior written notice of termination has been given through diplomatic channels. In such event, the Convention shall cease to have effect: (
12. a)in Ireland: (
13. i)as respects income tax, the income levy and capital gains tax, for any year of assessment beginning on or after the first day of January of the year next following that in which the period specified in the said notice of termination expires; (
14. ii)as respects corporation tax, for any financial year beginning on or after the first day of January of the year next following that in which the period specified in the said notice of termination expires; (
15. b)in the United Arab Emirates: (
16. i)in respect of taxes withheld at source, for amounts paid or credited on or after the first day of January of the year next following that in which the period specified in the notice of termination expires; (
17. ii)in respect of other taxes, for taxable periods beginning on or after the first day of January of the year next following that in which the period specified in the notice of termination expires. IN WITNESS WHEREOF the undersigned, duly authorised thereto, have signed this Convention. Done in duplicate at Dubai this 1st day of July 2010 in the English and Arabic languages For IrelandCiarán Madden For the United Arab EmiratesYounis Haji Al Khoori Protocol At the time of signing this Convention between Ireland and the United Arab Emirates for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital Gains, the undersigned have agreed that the following provisions shall form an integral part of this Convention: 1. With respect to Article 3: Notwithstanding the second sentence of Article 3 of this Convention, if any convention for the avoidance of double taxation, signed by the United Arab Emirates after the date of signature of this Convention, affords more favourable treatment than is afforded under this Convention in relation to any such matter as is referred to in Article 3 of this Convention, then a resident of Ireland shall thereupon automatically be entitled to that more favourable treatment as if the provisions of this Convention afforded such treatment. 2. With respect to Article 5: Notwithstanding the provisions of paragraph 1 of Article 5: (
18. a)it is the following persons that shall be regarded as a resident of the United Arab Emirates and accordingly entitled to claim the benefits provided by this Convention: (
19. i)an individual who is a national of the United Arab Emirates and who is present in the United Arab Emirates for a period or periods totalling in the aggregate at least 183 days in the fiscal year concerned; (
20. ii)the Government of the United Arab Emirates and any political subdivision or local Government or local authority thereof; (iii) the following types of entities created under public law which are wholly owned and controlled by the United Arab Emirates or a political subdivision or local Government or local authority thereof: public corporations; government agencies; foundations; developments funds and any wholly owned entities of the above. In particular, the following institutions are included: the Abu Dhabi Investment Authority (ADIA), the United Arab Emirates Investment Authority, the Abu Dhabi Investment Council, the Dubai Investment Council, the Zayed Charity Foundation and the United Arab Emirates Central Bank; (
21. iv)any person if that person shall pay income tax or corporate tax in the United Arab Emirates on income, by reason of domicile, residence, place of management or any other criterion of a similar nature, where that person is in receipt of income; (
22. v)a pension fund established in the United Arab Emirates which is generally exempt from tax in the United Arab Emirates and which provides pension or retirement benefits to its members; and (
23. b)persons regarded as liable to tax under the laws of Ireland by reason of domicile, residence, place of management or any other criterion of a similar nature shall include the following: (
24. i)the National Treasury Management Agency of Ireland; (
25. ii)the National Pension Reserve Fund of Ireland; (iii) any agency or institution wholly or mainly owned by the Government of Ireland; (
26. iv)a pension fund established in Ireland which is generally exempt from tax in Ireland and which provides pension or retirement benefits to its members. 3. With respect to Articles 5 and 11: It is understood that, in addition to paragraph 2 of this Protocol, a company which is incorporated and has its place of effective management in the United Arab Emirates shall, (
27. a)in applying sections 21B