UAE-Venezuela Tax agreement: Effective from January 2012

The tax treaty between the UAE and Venezuela was signed on 11 December 2010. It entered into force on 20 June 2011, and is effective from 1 January 2012.

The main provisions of the agreement are as follows:

Permanent establishment

The term "permanent establishment" means:

- A fixed place of business through which the business of an enterprise is wholly or partly carried on,

- A building site, a construction, assembly or installation project or supervisory activity in connection therewith or drilling rig or ship used for exploration or exploitation of natural resources, constitutes a permanent establishment only if such site, project or activity lasts, more than 6 months.

Dividends

Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.