Israel, UAE rubberstamp tax treaty to boost economic cooperation

by   |  VIEW 623

Israel, UAE rubberstamp tax treaty to boost economic cooperation

In the latest flashpoint of a deluge of depolarizations in Mideast’s business landscape, Israel’s Finance Ministry had issued a statement late on Monday saying that the Biblical Holy Land on the Mediterranean Sea had signed off a landmark tax treaty with United Arab Emirates, branding the deal as a fresh impetus to spur up business relationships between the countries.

Aside from that, latest move from Israel and United Arab Emirates came forth as UAE’s Finance Ministry was quoted saying on October last year that it had reached a preliminary accord with Israel which in effect would help the Gulf state avert double taxations.

Besides, Israel’s Finance Ministry had said in the statement that the tax treaty, which is expected to be ratified by Israeli ministers and parliament members as early as this year, would come into effect on January 1, 2022.

Israel, UAE sign tax treaty in bids to normalise trade relationship

On top of that, a tax convention between Israel and UAE in effect would be the first since Israel had normalized relationships with United Arab Emirates and Bahrain later last year, while Israel is reportedly working out an option to boost trade-ties with Morocco alongside Sudan.

Meanwhile, adding that the latest accord would include tax deductions, dividends and a cap on royalties, Israeli Finance Minister Israel Katz said in a statement following the announcement, “It (the tax-treaty) provides certainty and favourable conditions for business activity and will strengthen economic ties”.

Israeli Foreign Minister Gabi Ashkanezi, in tandem, was quoted saying late on the day that the accord would scale business investments higher and would help both countries’ economies. Israel had reached a normalization deal with UAE back in September last year.