Germany - UAE Tax agreement: in force

On 14 July 2011, the new German-Emirati double taxation agreement entered into force. The treaty was signed in Berlin on 1 July 2010. The treaty's provisions apply retroactively from 1 January 2009. 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 or construction or installation project constitutes a permanent establishment only if it lasts more than twelve 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.