GCC Tax Treaty Developments: What Businesses Should Know

# GCC Tax Treaty Developments: What Businesses Should Know

Recent developments in tax treaties between GCC countries and major trading partners have significant implications for cross-border business operations.

## UAE Tax Treaties

The UAE has recently signed or updated tax treaties with:

- **India** - Updated provisions for digital services
- **Egypt** - New treaty entered into force
- **Kenya** - Treaty under negotiation
- **Saudi Arabia** - GCC coordination ongoing

## Key Treaty Provisions

Most UAE treaties provide:

| Provision | Typical Rate |
|-----------|--------------|
| Dividends | 0-5% |
| Interest | 0-10% |
| Royalties | 0-10% |
| Capital gains | Usually exempt |

## Pakistan Tax Treaties

| Country | Dividend Rate | Interest Rate |
|---------|--------------|---------------|
| UAE | 10% | 10% |
| UK | 15% | 15% |
| USA | 15% | 15% |
| China | 10% | 10% |

Contact TaxWatch for cross-border tax planning advice.