The State Duma Committee on International Affairs recommended ratifying the Agreement between the Government of the Russian Federation and the Government of the United Arab Emirates on the elimination of double taxation with respect to taxes on income and capital and the prevention of tax avoidance and evasion.
The purpose of the Agreement, signed in Abu Dhabi on February 17, 2025, is to ensure conditions under which legal entities and individuals of Russia and the UAE will not pay taxes twice on the same type of income in their own state and the partner state. “The solution to this issue will facilitate the mutual attraction of investments and provide conditions for the elimination of double taxation,” the explanatory note says.
The accompanying documents emphasize that in the context of ensuring sustainable development of the Russian economy, development and expansion of external trade, economic and investment relations, there is an active reorientation of Russian business to the markets of Asian and Middle Eastern countries, which, accordingly, requires timely adjustments to the legislative framework. “The UAE plays a special role in expanding the economic ties of the Russian Federation in the Middle East. Against the backdrop of growing investment and economic cooperation with the UAE, the current Agreement on taxation of state institutions does not fully meet the current level of relations between the countries. Geopolitical conditions require that Russia and the UAE have a full-fledged international agreement on the avoidance of double taxation,” the explanatory note notes.
The International Affairs Committee proposes to raise the issue of ratification of the Agreement with the UAE at the plenary session of the State Duma on June 24.