Abu Dhabi [UAE], September 16 – Formal talks on the proposed Double Taxation Avoidance Agreement (DTAA) between Nepal and the United Arab Emirates (UAE) began in the UAE on Tuesday.
A Nepali delegation led by Director General of the Inland Revenue Department Dr. Bhism Kumar Bhusal arrived in the UAE on Monday to participate in the discussions. Nepal’s Ambassador to the UAE, Tej Bahadur Chhetry is also taking part in the talks.
The proposed agreement aims to prevent individuals and businesses from being taxed twice on the same income in Nepal and the UAE provide greater tax clarity and promote trade and investment between the two countries.
The discussions are expected to cover tax residency, permanent establishments, dividends, interest, royalties, service fees, withholding taxes, exchange of tax information and mechanisms for resolving tax disputes.
Once concluded and implemented the agreement is expected to provide greater tax certainty for companies, investors and other taxpayers operating between Nepal and the UAE while supporting bilateral investment and economic cooperation.
The current meeting is focused on technical and policy-level discussions. Following the talks both sides will need to reach agreement on the draft and complete the necessary government approvals, signing and implementation procedures.
