The Council of Ministers of Timor-Leste approved the negotiation of an income tax treaty with the UAE on 19 February 2025.
A tax treaty is a bilateral agreement between two countries designed to address double taxation on both passive and active income earned by their respective citizens. These treaties typically define the extent to which each country can impose taxes on a taxpayer’s income, capital, estate, or wealth.
An income tax treaty is also known as a Double Tax Agreement (DTA).
Any resulting treaty would be the first of its kind between the two countries and must be concluded, signed, and ratified before it can come into effect.
