Blümel: Seeking to ensure tax transparency and to combat the transfer of profits
Blümel signs amendment to double tax treaty with UAE
During his bilateral visit to the United Arab Emirates (UAE) in Dubai, Finance Minister Gernot Blümel has signed a protocol amending the double tax treaty between Austria and the UAE. The aim thereby is implementation of OECD standards relating to tax transparency and combating the reduction and transfer of profits. "In view of global competition, fair taxation is the order of the day. We are taking action against tax avoidance and protecting Austrian businesses. Through this double tax treaty, we are taking a key step in this direction at bilateral level. The changes to the treaty will prevent income from the UAE either not being taxed at all, or being taxed at a lower rate than Austrian businesses with domestic income," explains Finance Minister Gernot Blümel.
Specifically, the treaty changes will mean that income from the UAE is no longer tax-exempt in Austria; now, any foreign taxes will be offset against Austrian tax. The existing double tax treaty dates back to 2003 and, as a result, no longer met the international tax standards of the 21st century. Finance Minister Blümel concludes: "Since 2019, negotiations have been ongoing on an amendment protocol. I am delighted to report that we concluded these in March 2021 and have now been able to officially sign the protocol."