S.I. No. 20/2011 - Double Taxation Relief (Taxes on Income and Capital Gains) (United Arab Emirates) Order 2011.

1. profits derived from selling of tickets on behalf of another enterprise,

2. income deriving from deposits at a bank,

if such profits or income is incidental to the operation of ships or aircraft in international traffic.

IN WITNESS WHEREOF, the undersigned, duly authorised thereto by their respective Governments, have signed this Protocol.

Done in duplicate at Dubai this 1st day of July 2010 in the English and Arabic languages

For Ireland

Ciarán Madden

For the United Arab Emirates

Younis Haji Al Khoori

GIVEN under the Official Seal of the Government,

11 January 2011.

BRIAN COWEN,

Taoiseach.

EXPLANATORY NOTE.

(This note is not part of the Instrument and does not purport to be a legal interpretation.)

This Order gives the force of law to the Convention between Ireland and the United Arab Emirates for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains, which is set out in the Schedule to the Order. The effect of the Convention is summarised below.

This Convention with the United Arab Emirates, which was signed in Dubai on 1st July 2010 is comprehensive in scope and is based on the OECD Model Convention.

The taxes covered by the Convention are, for Ireland, Income Tax, Income Levy, Corporation Tax and Capital Gains Tax: for the United Arab Emirates, the Taxes on Income and the Corporate Tax.

The Convention provides for the allocation of taxing rights between Ireland and the United Arab Emirates and for the granting of relief from double taxation with regard to items of income and capital gains which, under the laws of Ireland and the laws of the United Arab Emirates, may under the terms of the Convention be taxed in both countries. Where both countries continue to have taxing rights, for example in the case of business profits arising through a permanent establishment which a person resident in one country has in the other country, or in the case of capital gains arising from the disposal of immovable property, the Convention provides that the country of residence of the recipient of the income or gain will give relief against its tax on the income or gains for the tax paid in the other country on the same income or gains. Irish direct investors (i.e. Irish companies holding 5% or more of the voting power of the paying company) in receipt of dividends from a United Arab Emirates company are granted credit for the tax paid by the United Arab Emirates company on the profits out of which the dividends are paid (known as credit for underlying tax).

There is an exemption from source country taxation with respect to dividend, interest and royalty income.

The Convention also provides for consultation between the competent authorities of the two countries for the purpose of resolving any doubts or difficulties arising as to the interpretation or application of the Convention and for the exchange of such information between these authorities as is forseeably relevant for carrying out the provisions of the Convention or of the domestic law of either country in relation to the taxes covered by the Convention.

The Convention will enter into force when each country notifies the other of the completion of its procedures for bringing the Convention into force. It will thereupon have effect in both countries for tax periods in that year.

3. With respect to Articles 5 and 11

It is understood that, in addition to paragraph 2 of this Protocol, a company which is incorporated and has its place of effective management in the United Arab Emirates shall,

(a) in applying sections 21B(1)(b)(i), 153 and 172D(3)(b)(i) of the Irish Taxes Consolidation Act 1997 and

(b) to enable a certificate to be given by the tax authority of the United Arab Emirates for the purposes of subparagraph (f) of paragraph 9 of Schedule 2A of that Act,

be deemed resident for the purposes of tax in the United Arab Emirates, by virtue of the tax law of the United Arab Emirates.

4. With respect to Article 9

The provisions of paragraph 1 of this Article shall also apply to

5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.

Article 25

Members of Diplomatic Missions and Consular Posts

Nothing in this Convention shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.

Article 26

Entry into Force

6. The provisions of paragraph 5 shall not affect the right of a Contracting State to levy, according to its law, a tax on gains from the alienation of any property derived by an individual if he is a resident of the other Contracting State and has been a resident of the first-mentioned State at any time during the five years immediately preceding the alienation of the property.

Article 15

Income from Employment

7. Where profits include items of income or gains which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article.

Article 9

Shipping and Air Transport

Notice of the making of this Statutory Instrument was published in

“Iris Oifigiúil” of

21

st January

, 2011.

WHEREAS it is enacted by

section 826

(1) (as amended by

section 35

of the

Finance Act 2007

(No. 11 of 2007)) of the

Taxes Consolidation Act 1997

(No. 39 of 1997) that where the Government by order declare that arrangements specified in the order have been made with the government of any territory outside the State in relation to affording relief from double taxation in respect of income tax, corporation tax in respect of income and chargeable gains, capital gains tax or any taxes of a similar character imposed by the laws of the State or by the laws of that territory and, in the case of taxes of any kind or description imposed by the laws of the State or the laws of that territory, in relation to exchanging information for the purposes of the prevention and detection of tax evasion or granting relief from taxation under the laws of that territory to persons who are resident in the State for the purposes of tax, and that it is expedient that those arrangements should have the force of law, and that the order so made is referred to in Part 1 of Schedule 24A to the

Taxes Consolidation Act 1997

, then, subject to section 826 of that Act, the arrangements shall, notwithstanding any enactment, have the force of law as if such order were an Act of the Oireachtas on and from the date of the insertion of a reference to the order into Part 1 of Schedule 24A

AND WHEREAS it is further enacted by

section 826

(6) of the

Taxes Consolidation Act 1997

that where such an order is proposed to be made, a draft of the order shall be laid before Dáil Éireann and the order shall not be made until a resolution approving of the draft has been passed by Dáil Éireann

AND WHEREAS a draft of the following Order has been laid before Dáil Éireann and a resolution approving of the draft has been passed by Dáil Éireann

NOW, the Government, in exercise of the powers conferred on them by

section 826

(1) (as amended by

section 35

of the

Finance Act 2007

(No. 11 of 2007)) of the

Taxes Consolidation Act 1997

(No. 39 of 1997), hereby order as follows