Russian Duma ratified the Agreement between Russia and UAE relating to taxation on income of public investment organizations that was signed in Abu Dhabi on 7 December 2011.
The agreement highlights efforts of enhancing different types of investment opportunities. The agreement coincides with both UAE and Russian efforts to create a positive investment environment which is distinguished by low start-up costs for investments and increased profit rates. This reflects the UAE’s strategy of diversifying its sources of national income and to enhance ties with other states.
Some of the key issues addressed in the agreement include direct benefits to be received by UAE federal and local investment organizations and sovereign funds, where profits they attain from shares, interest and capital are exempted from Russian taxation.
The agreement also indicates that UAE federal and local organizations and sovereign funds are exempt from taxation in Russia, which had previously amounted to 20 % tax on stock profits, 15 % tax on profits from interest, and 20 % tax on capital profits (this includes the transfer of ownership of shares, bonds and other forms of ownership in any Russian companies).