The governments of Jamaica and the United Arab Emirates (UAE) have signed an agreement to avoid double taxation and prevent tax evasion with respect to income taxes.
The agreement was signed on Thursday by Finance Minister Dr Nigel Clarke and UAE Ambassador to Jamaica Bader Abdullah Saeed Almatrooshi.
“We hope that the signing of this agreement will be a signal to investors in Jamaica and investors in the UAE that the vision we have for a shared future between the UAE and Jamaica is one of friendship and prosperity, trade, economic relations, and investment,” said Clarke.
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The objectives of the agreement are to provide full protection to taxpayers against double taxation and to allow the free flow of international trade or cross-border transactions and investments, as well as the transfer of technology
Perceived benefits include clarification of each state’s taxing rights, avoidance of international legal double taxation, and prevention of tax evasion with anti-tax avoidance provisions.
Foreign Affairs and Trade Minister Kamina Johnson Smith noted that bringing the deal to fruition was the result of deep interest, close dialogue and coordination.
She also noted that the agreement provides a backdrop and insight into the future of trade and investment relations that “we aim to foster between the two countries.”
“The prevention or elimination of domestic double taxation for the same income, the exchange of goods and services, and the movement of capital and people is an important part of our bilateral investment outlook,” Johnson Smith said. .
The ambassador thanked Jamaica for its support, arguing that this signing is a particularly important agreement between the two countries and that with this agreement, the possibilities are endless.
Jamaica currently has double taxation agreements with 15 other countries – Canada, China, Denmark, France, Germany, Israel, Italy, Japan, Mexico, Norway, Spain, Sweden, Switzerland, UK and USA.
Jamaica is also party to the CARICOM Multilateral Agreement and has Tax Information and Exchange Agreements (TIEAs) with most Nordic countries, including Denmark, Norway, the Faroe Islands, Finland, Greenland and Iceland.
There are also TIEAs with Brazil and Macao.