Direct Tax Avoidance Agreements

                                                                                                                              UAE

Article 14 - Independent personal services - 1. Income derived by a resident of a Contracting State in respect of professional services or other independent activities of a similar character shall be taxable only in that State, except in the following circumstances when such income may also be taxed in the other Contracting State :

(a) if he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other Contracting State ; or

(b) if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days in the relevant previous year or year of income, as the case may be; in that case only so much of the income as is derived from his activities performed in that other State may be taxed in that other State.

2. The term professional services includes independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, surgeons, lawyers, engineers, architects, dentists and accountants.

5. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3 and 4 above shall be taxable only in the ContractingState of which the alienator is a resident.

(Kindly Note: Above paragraph comes into force with effect from 1st day of April, 2008)

Note :

1. Has been substituted vide Notification No. 282/2007 dated 28/11/2007 Income tax before it was read as, "Gains from the alienation of any property other than that mentioned in paragraphs (1) and (2) shall be taxable only in the Contracting State of which the alienator is a resident." (w.e.f. 1st day of April, 2008)