Tax treaty between the UAE and Venezuela: Effective from January 2012

Signed on 7 June 2010, the tax treaty between the UAE and Venezuela entered into force on 20 June 2011. The agreement is effective from January 2012.

The main provisions are:

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.