Overview of the Maldives-UAE DTA

The Double Tax Avoidance Agreement (“DTA”) between the Maldives and United Arab Emirates (“UAE”) (“Maldives-UAE DTA”) holds a distinctive position in the history of Maldives’ international trade relations, as it marks the first-ever agreement of its kind between the Maldives and its bilateral trade partner.

Signed on 17 October 2017, the Maldives-UAE DTA lays down the rules and procedures for determining the tax liability of individuals and entities operating in both countries. It covers various types of income, including dividends, interest, royalties, and capital gains, ensuring that taxpayers are not subjected to excessive taxation in either jurisdiction. The treaty applies from 1 January 2017.

This overview provides a brief analysis of the Maldives-UAE DTA. The key provisions of the DTA will be looked at, including the implications it has on enterprises attempting to make use of the treaty.