The incidence of double taxation occurs when an individual is required to pay tax more than once on the same income  generated from a country different from his/her home country.

A taxpayer’s own country (referred to as home country) has a sovereign right to tax the individual; the source of income may be in some other country (referred to as host country) which also claims a right to tax the income arising in that country. The result is that income arising to a resident of the home country is subject to tax in the home country as part of the individual’s total world income and, also in host country which provides the source for that income.

The Double Tax Avoidance Agreements (DTAA) is essentially bilateral agreements entered into between two countries.The basic objective is to avoid, taxation of income in both the countries (i.e. Double taxation of same income) and to promote and foster economic trade and investment between the two countries.

The advantage of DTAA are as under:

1. Lower Withholding Taxes (Tax Deduction at Source)
2. Complete Exemption of Income from Taxes
3. Underlying Tax Credits
4. Tax Sparing Credits

The Non Resident can certainly take the benefit of the provisions of DTAA entered into between UAE and the country from which the person belongs to.

Signed Agreement:

The UAE has 94 agreements in place with other nations to avoid double taxation on investments overseas. Attached is the list of countries with which UAE has entered into DTAA.

Country List/Agreements on the Avoidance of Double Taxation

6/25/20044/24/2001Algeria4/29/20042/13/2001Yemen5/27/19974/10/1996Tunisia7/1/20002/9/1999Morocco6/6/20043/15/2001Sudan1/12/20021/26/2000Syria3/23/19995/17/1998Lebanon3/2/20049/24/2003Mozambique11/20/20002/7/1993Pakistan11/30/19924/29/1992India10/3/20073/27/2007Amendment Protocol3/12/20134/16/2012Amendment Protocol7/4/20049/24/2003Sri Lanka10/20/20089/23/2003Philippines7/18/199612/1/1995Singapore6/1/199911/30/1995Indonesia