It is common knowledge that the United Arab Emirates is one of the most popular states in the world in terms of doing business and the rules set for foreign investors planning to conduct their business outside their home country. What is attractive for the UAE? For any business, attractiveness is determined by the degree of independence that is given to it by the state. This independence largely depends on the taxation regime, which is used in the host state. In this sense, the United Arab Emirates is far ahead of other states. The taxation regime here refers to, perhaps, the most favorable and loyal in comparison with other countries. The UAE occupies a leading position in the world in terms of the number of intergovernmental agreements on the avoidance of double taxation. In combination with the internal rules of taxation in force in the UAE, the international legal norms that allow avoiding double taxation attract numerous foreign investors, who operate both as legal entities and as individual entrepreneurs. The agreement on avoidance of double taxation allows citizens of both contracting parties to carry out commercial or other income-generating activities in the territory of each of the participating states and at the same time pay taxes at the place of their residence.

It should be noted that the tax policy of many countries of the world is that such agreements are signed only with those countries with which initially the country has close economic and social ties. The United Arab Emirates in this sense are much more liberal, since they are party to such agreements with a multitude of states, regardless of the actual volume of trade. It can be assumed that the policy of the UAE in this way is aimed not only at maintaining existing economic contacts, but also in shaping the demand for the creation of strong economic ties with citizens of some states that can act as potential investors and contribute to the economy of the state.

For example, the agreement on avoidance of double taxation with the Republic of Kazakhstan establishes rules on direct taxes. In accordance with the signed agreement, the UAE does not have tax liabilities for corporate and income taxes. In the first place in the agreement, taxes on profits, levied by one of the contracting states by its administrative or municipal bodies, are mentioned. This does not take into account the way they are paid. The main rule related to avoidance of double taxation is that in several countries, the same income is not taxed at the same time. Under such taxes it is accepted to understand all types of obligations to the budget, which are divided into incomes, and some of their elements, including profits from alienation of property, immovable and movable. Also included here are taxes on the full amount of remuneration, salaries that are paid by the enterprise. In addition, there are no liabilities for capital gains, it will not be necessary to pay doubly not only for profits from core activities, but also for other types of income. This can be royalties, interest, dividends from sales. The agreement also applies to similar, identical types of tax obligations that one of the contracting countries will require to pay. Calculate the obligations of entrepreneurs only need in the country – the source of payment, that is, where there was a tax. And in the UAE, taxes are charged at reduced rates. Until 2018, in the UAE, almost no payments were made to the budget. Since January, authorities were forced to introduce VAT at a rate of 5%. However, it is obvious that, in comparison with the tax regime in force in the Republic of Kazakhstan, the rules of taxation in the UAE are as simple as possible and are aimed at attracting foreign capital.