UAE, Jersey sign double-taxation avoidance agreement
The UAE and the Channel Islands of Jersey have signed a double-taxation avoidance (DTA) agreement between the two governments, which has been on the cards since January 2015.
The agreement was signed by HE Obaid Humaid Al Tayer, Minister of State for Financial Affairs, and Senator Ian Gorst, Jersey’s Chief Minister.
HE Al Tayer said the move was part of the ministry’s efforts to establish cooperation with tax legislations to curtail the evasion of income tax, as well as to provide full protection to companies and individuals from direct or indirect double taxation.
Senator Gorst said the signing of the DTA will further strengthen Jersey’s bilateral relations with the UAE.
The country has a total of 96 such agreements signed with financial legislative authorities across the world.
The UAE’s formal economic and commercial relations with the self-governing tax haven dates back to 2001 when the island opened the GCC representative office of Jersey Finance in Abu Dhabi to promote its financial services sector.
Banks from the UAE have opened their branches on the island, ever since Jersey structured Sharia-compliant vehicles to attract investors from Muslim majority countries.
Emirates NBD Trust Company (Jersey) Limited, which was set up in 2001, and Abu Dhabi Commercial Bank (ADCB), launched in 2011, has been in operation on the island.
Meanwhile, National Bank of Abu Dhabi revealed to AMEinfo earlier this month that it will soon close down its NBAD Trust Company (Jersey) without giving further details.