The Government of Italy and its counterpart from the United Arab Emirates have signed a convention for the avoidance of double taxation
. The treaty applies to taxes on income and it also has the purpose to prevent fiscal evasion.
Our company registration agents in Italy
can help you understand how the treaty influences your business and taxable income, if you are a foreign investor
from the UAE who wants to open a company in Italy
Taxes covered by the UAE-Italy treaty
The Double Taxation Agreement (DTA)
is just one of many documents signed by Italy with various countries worldwide. The
purpose of these double tax treaties
is to encourage foreign investments and protect individuals from being taxed in both countries. The convention applies both to Italian and UAE residents or those who are residents of both states.
The taxes covered by the treaty are those imposed on income on behalf of each contracting state and for Italy, these
- the personal income tax;
- the corporate income tax;
- the local income tax.
The existing taxes to which the convention applies in the United Arab Emirates are:
- the income tax for legal and natural persons;
- the corporate tax.
Any additional taxes imposed after the convention was signed are also included in the treaty. Also, the two countries have agreed to notify one another of any changes in the tax laws. For the purpose of the agreement, a permanent establishment that is taxed under the laws applicable in one of the countries is the fixed place of business from where a company carries out its business activities. It includes branches in Italy
or the UAE, offices, factories, workshops, mines, quarries or others, building or construction sites.
For a complete definition of the types of companies
and the taxes they must pay in Italy, you can request the services of our company registration specialists in Italy
The taxation on income according to the Italy-UAE DTA
The convention sets forth the taxation on income produced in one country or both by an individual or a corporation. The types of income that are covered by the treaty include:
- from immovable property, including income from agriculture or forestry;
- business profits;
- profits derived from shipping and air transport;
- profits derived from associated enterprises;
- the taxation of interest, royalties, capital gains and dividends;
- director’s fees and pensions.