CROSS-BORDER WITHHOLDING TAX COORDINATION IN UAE ✅ FINANCIAL SERVICES ✅ SERVICES

Understanding Withholding Tax & Its Relevance

Withholding tax refers to the deduction of tax at source on certain payments made cross-border (dividends, interest, royalties, service fees). Many ask what is withholding tax, or specifically what is withholding tax in UAE.

Under current UAE law, the rate for most payments is maintained at 0%—meaning most cross-border payments from UAE are not subject to withholding deductions.

That said, your counterparty’s jurisdiction may impose withholding tax on inbound payments, creating tax friction. You may also need to obtain or coordinate a withholding tax certificate or manage withholding tax for foreign payments. For withholding tax on payments to foreign companies, treaty reliefs and foreign tax credit mechanisms are often relevant. Our service helps you navigate these complexities, ensuring cross-border payments are structured and documented optimally for tax efficiency.

Why Withholding Coordination Is Important Even in a 0% Regime

Even though withholding tax UAE currently stands at 0%, planning and compliance remain essential.

When UAE entities pay abroad, one must confirm whether withholding applies in the recipient’s jurisdiction and whether that tax qualifies for relief under Double Taxation Treaties.

We advise on withholding tax on payments to foreign companies, assist in filing appropriate forms, obtain certificates, and coordinate tax credit claims.

Furthermore, when you receive payments from jurisdictions that do enforce withholding tax, you may need legal coordination to claim refunds or credits back in your own jurisdiction. We ensure your cross-border cash flows are not eroded by unintended tax leakage.

What Our Coordination Service Includes

Analysis of payment types (dividends, interest, royalties, technical/service fees) to assess withholding risk
Review of relevant Double Taxation Treaties and domestic law to confirm applicable rates or exemptions
Assistance with withholding tax certificate issuance or confirmation
Coordination of documentation, declarations, and disclosures required by foreign tax authorities
Structuring cross-border payments and contracts to protect net receipts and support audit defense

Conclusion

With our legal coordination, you gain confidence that your cross-border payments are handled strategically, legally, and tax-efficiently.

Secure Transaction

As a Client, you are freed from all financial risks when collaborating with Contractors, as the payment amount is reserved by our service and is paid to the Contractor only after receiving confirmation from you about the completion of the stage.

If the service is not provided, the funds are returned to you. The service takes on all financial risks and acts as a guarantor and custodian of funds, and in case of disputes between the parties, acts as an independent Arbitrator.

Your money is in safe hands!