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June 26, 2026

This Convention between the UAE and Luxembourg addresses the avoidance of double taxation on income and capital, covering taxes such as corporation tax and municipal business tax. The agreement establishes a maximum withholding tax of 5% on Dividends for qualifying corporate holdings and 10% for others, with specific exemptions for government institutions. Notably, Interest and Royalties are taxable only in the resident state, effectively resulting in a 0% source withholding tax. To eliminate double taxation, the UAE utilizes the credit method, while Luxembourg employs a combination of exemption and credit methods. A Protocol is included regarding government entities.

Convention between the UNITED ARAB EMIRATES and GRAND DUCHY OF LUXEMBOURG for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital

StatusIn Force

Signed on20 November 2005

Entered into force19 June 2009

AmendmentsProtocol 1: 26 October 2014

Terminated on-

The Government of United Arab Emirates and the Government of the Grand Duchy of Luxembourg

Desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, have agreed as follows:

Contents

Article 1 - Persons Covered

Article 2 - Taxes Covered

Article 3 - General Definitions

Article 4 - Resident

Article 5 - Permanent Establishment

Article 6 - Income from Immovable Property

Article 7 - Business Profits

Article 8 - Shipping and Air Transport

Article 9 - Associated Enterprises

Article 10 - Dividends

Article 11 - Interest

Article 12 - Royalties

Article 13 - Capital Gains

Article 14 - Income from Employment

Article 15 - Directors' Fees

Article 16 - Artistes and Sportsmen

Article 17 - Pensions

Article 18 - Government Service

Article 19 - Students and Trainees

Article 20 - Teachers and Researchers

Article 21 - Other Income

Article 22 - Capital

Article 23 - Elimination of Double Taxation

Article 24 - Non-Discrimination

Article 25 - Mutual Agreement Procedure

Article 26 - Exchange of Information

Article 27 - Members of Diplomatic Missions and Consular Posts

Article 28 - Special Provision

Article 29 - Entry into Force

Article 30 - Termination

Protocol

Article 1
Persons Covered

This Convention shall apply to persons who are residents of one or both of the Contracting States.
It is understood that nothing in this Convention shall effect the right of the United Arab Emirates, any of its local Governments or its local authorities thereof to apply its domestic laws and regulations related to the taxation of income and profits derived from hydrocarbons and its associated activities situated in the territory of the United Arab Emirates.

Article 1Persons Covered

Article 2Taxes Covered

Article 1
Persons Covered

Article 2
Taxes Covered