ABUJA – Israel and the United Arab Emirates (UAE) have signed their first tax treaty, the Israeli Ministry of Finance announced in a statement on Monday.
“The treaty is an important pillar in the relationship between the two countries, providing certainty to investors and encouraging investment and business cooperation,’’ the statement said.
Israel and the UAE signed a historic normalisation deal at the White House on Sept. 15, 2020.
Along with clauses related to non-discrimination, exchange of information, and prevention of abuse, the treaty provides reduced tax rates to avoid double tax payments.
The treaty, which is subject to the ratification of the Israeli government and parliament, is due to take effect on Jan. 1, 2022.
“The tax treaty, along with an investment protection agreement and memoranda of understanding signed by the two countries, lays the groundwork for increasing economic cooperation,’’ the ministry said. (Xinhua/NAN)