Israel and the United Arab Emirates signed a tax treaty on Monday, Israel's Finance Ministry said, describing the move as a spur to business development between the countries after they normalised relations last year.
The UAE finance ministry said in October that it had reached a preliminary agreement with Israel on avoiding double taxation.
The tax convention, once ratified by ministers and parliament this year, will be Israel's 59th and go into effect on January 1, 2022.
It is the first tax treaty reached in the wake of Israel's normalising relations with the UAE and Bahrain last year. In parallel, Israel has moved to improve ties with Morocco and Sudan. The treaty is based primarily on the OECD model, Israeli Finance Minister Israel Katz said in a statement, adding that it "provides certainty and favourable conditions for business activity and will strengthen economic ties" with the UAE. - Reuters
Oman Observer is now on the WhatsApp channel. Click here
