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UAE, Benin sign conventions on double taxation and investment protection

WAM ABU DHABI: The Ministry of Finance (MoF), on behalf of the UAE, has signed two agreements on the avoidance of double taxation on income and protection and promotion of investments with the Republic of Benin.

The signing of the two agreements are in line with efforts to promote investments between UAE and Republic of Benin and to facilitate the movement of capital and provide protection from all commercial risk, MoF said in a press release.

The signing ceremony took place at MoF’s headquarters in Abu Dhabi. Both agreements were signed by Younis Haji Khouri, Undersecretary of MoF, on behalf of the UAE, and Isa Moussa Toure, Ambassador of the Republic of Benin to the UAE.

These conventions reflect the Ministry’s commitment to further develop and promote the UAE’s investment and trade relations following the privatization policy of the Republic of Benin in diverse sectors including telecommunications, water, electricity and agriculture. The major advantages of the two agreements for the UAE are that they grant investment tax incentives for governmental entities and exempt government institutions from any type of income taxes in various production sectors.

Commenting on the agreements, Younis Haji Al Khouri, Undersecretary of MoF said: “Conventions on the avoidance of double taxation on income and the protection and promotion of investments represent the most important legal instruments for the protection of holders. They facilitate the movement of capital and offer protection from all non commercial risks.” He added: “The UAE has signed a number of agreements with its strategic partners around the world which have led the UAE to become a leader in the area of double taxation agreements, ranking 24th globally. The UAE is the first country to be a non-member of the Organisation for Economic Co-operation and Development to have a strategic relationship and partnership with the organisation, positioning our country as a serious regional hub able to foster dialogue in MENA on tax issues.

“The implementation of these tax conventions, which are in accordance with international standards, allow nations across the region to secure fair shares of the tax base and encourage capital flow.” WAM/MMYS