The UAE ministry of finance has signed a final agreement with Palestine to eliminate double taxation on income in a move aimed at bolstering economic ties and enhance trade development between the two countries.

The UAE has signed 64 agreements to avoid double taxation, and all have been adopted and are under implementation.

Double taxation agreements such as this help promote the development goals of countries by diversifying the sources of national income and increasing the volume of inward investment, said Younis Haji Al Khouri, the undersecretary of MoF, after signing the key pact with Dr Khairi Al Oraidi, the ambassador of Palestine to the UAE on Monday.

The agreement aims to support the development of economic relations, improve the investment climate between the two economies, promote importing and exporting operations in addition to developing direct trade between both countries.

It also reflects the efforts of the UAE ministry to enhance financial relations with various countries around the world, and its continuous quest to provide full protection for taxpayers from double taxation, whether direct or indirect.

Furthermore, the agreement serves to strengthen the UAE’s efforts to further access the world’s economy through promoting the free movement of production factors, increase investment opportunities, and encourage import and export operations while avoiding the obstruction of the free flow of trade and investment.

Commenting on the pact, Al Khouri said, "The signing of the agreement to avoid double taxation is one of the important steps that we have undertaken to strengthen mutual relations between UAE and Palestine economically and financially."

"This agreement comes under considerable efforts by the Ministry to consolidate and strengthen the economic and investment co-operation between the UAE and the world. This is a mutual beneficial arrangement that will have a positive impact on the investment climate and economic development in the UAE," he stated.

“This type of agreement provides significant benefits to citizens, companies, sovereign funds, private sector institutions and residents as well as institutions of the federal and local governments, in addition to state owned airlines which are exempt from all taxes.” Al Khouri added.-TradeArabia News Service