The Ministry of Finance of the Russian Federation and the UAE are close to a new double taxation treaty (DTT).
The following rates have been agreed:
15% rate on dividends
10% rate on interest income
???-rate on royalties
15% rate on dividends
10% rate on interest income
???-rate on royalties
The Russian domestic tax rates are as follows:
15% rate on dividends
20% rate on interest income
20% rate on royalties
15% rate on dividends
20% rate on interest income
20% rate on royalties
At the same time for western jurisdictions often the rates were as follows:
5% rate on dividends
0% rate on interest income
0% rate on royalties
The UAE government is interested in the insertion of 0% on royalties.
5% rate on dividends
0% rate on interest income
0% rate on royalties
The UAE government is interested in the insertion of 0% on royalties.
The agreement between the UAE and the Russian Federation had a narrow focus on the income of states and state structures, now the situation has changed dramatically over 3000 Russian companies have established legal entities in the UAE. The Emirates are attractive for business from all sides starting from free zones and ending with a favourable tax climate. How the new SIDN will affect this climate, we will be watching closely and keeping our hand on the pulse.
