Recently, President Abdel Fattah El-Sisi approved a crucial agreement aimed at preventing double taxation between Egypt and the United Arab Emirates. This development, marked by the issuance of Presidential Decree No. 211 of 2025, underscores the commitment of both nations to enhance economic cooperation and facilitate trade by minimizing tax liabilities. The decision, formally introduced at a session of the Egyptian Parliament on June 15, 2025, reflects the growing ties between these two countries and their shared vision for sustainable development.
Details of the Agreement
The protocol, which serves as an annex to the existing agreement on avoiding double taxation, specifically targets issues related to income tax. The essence of this agreement is to create a framework that prevents individuals and businesses from having to pay taxes on the same income in both countries. This initiative aims to foster a more conducive environment for foreign investments and economic activities between Egypt and the UAE, making it easier for companies to operate across borders.
Parliamentary Approval
The Egyptian Parliament, during its session on June 15, 2025, approved this significant statute, highlighting the collective support for international agreements that benefit the economy. Such parliamentary backing is crucial for the effectiveness of the agreement, as it signals a unified approach to tax regulation and international cooperation.
Impact on Economic Relations
The approval of the agreement to prevent double taxation is expected to enhance economic relations between Egypt and the UAE. By alleviating tax burdens, businesses are likely to find it more feasible to invest in each other’s markets. Moreover, this agreement is anticipated to encourage not only bilateral trade but also collaboration in various sectors, including technology, tourism, and renewable energy.
Next Steps and Implementation
With the decree formally published in the official gazette, the next steps will involve the implementation of the agreement’s provisions. Government agencies in both Egypt and the UAE will need to coordinate to ensure compliance and facilitate the benefits of this protocol for businesses and individuals alike. The success of this initiative will depend on effective communication and transparency between both governments as they navigate the complexities of cross-border taxation.