The UAE Ministry of Finance said it has signed a double taxation avoidance agreement with Switzerland in line with the emirates' efforts to enhance global financial relations.

The move reflects the UAE’s commitment to enhance economic relations and import and export activities between the two countries in addition to improving trade through providing full protection from direct and indirect double taxation processes, said a ministry statement.

Younis Haji Al Khouri, undersecretary of the Ministry of Finance and Wolfgang Amadeus Bruelhart, Ambassador of Switzerland to the UAE signed the deal at the ministry headquarters in Dubai.

The agreement reflects the UAE’s efforts in supporting the free movement of factors of production, increasing investment opportunities, avoiding obstacles pertaining to mutual trade and investment activities and encouraging import and export between the two countries.

The double taxation avoidance agreements play an important part in allowing countries to implement their development strategies, diversify sources of income, and attract foreign investments.

The pact also aims to enhance mutual investments between the UAE and Switzerland, and to support the UAE’s development goals.

Commenting on the pact, Al Khouri said: 'The UAE has signed this agreement with Switzerland as part of its efforts to solidify joint financial and investment efforts with other countries, and to enhance its local economy.'

'Not only do these agreements play a positive role in enhancing global ties, but they also provide benefits for citizens, companies, sovereign wealth funds, private and public companies, residents, and national state-owned air carriers, which are exempt from all  taxes,' he explained.

Bruelhart said the agreement marks an important milestone in the partnership between the two countries and aims to enhance bilateral financial and economic relations.

'The UAE and Switzerland have previously also signed an agreement to protect and encourage investments between the two nations in 1998,' he added.

The UAE has inked 57 similar agreements to enhance its regional and global position through creating opportunities for the growth of the public and private sectors, and to develop its air transport, trade and tourism industries to achieve sustainable social and economic growth.-TradeArabia News Service