United Arab Emirates – Australia Tax Treaty
The United Arab Emirates-Australia tax treaty caps withholding on dividends at 15% for portfolio investors and 5% for qualifying direct investment, with interest payments fully exempt at 0%. Royalties are taxed at a uniform 10% across all categories. Private pensions are taxable only in the country of residence, with no withholding at source. This is one of 21 active treaties in United Arab Emirates's network and one of 48 in Australia's. The general dividend rate of 15% compares to a median of 10% across United Arab Emirates's network and 15% across Australia's.
Verified data
UAE Ministry of Finance (mof.gov.ae) - Double Taxation Avoidance Agreements (Treaty list verified April 2026. Rates from individual treaty texts (Articles 10-12). UAE has 0% WHT on dividends, interest, and royalties domestically. Treaty rates shown are the ceiling the source country may apply; from UAE side, the rate is always 0%.)
Withholding Rate Summary
Source: United Arab Emirates Treaty Reference| Income Type | Treaty Rate | Statutory Rate (United Arab Emirates) |
|---|---|---|
| Dividends (general) Portfolio investors | 15% | 0% |
| Dividends (qualified) Beneficial owner is a company holding >= 10% of voting stock | 5% | 0% |
| Interest Bank interest, bonds, loans | 0% | 0% |
| Royalties (avg) Patents, copyright, know-how, film/TV | 10% | — |
| Pensions Private pension distributions | 0% | — |
| Social Security Government social security benefits | 0% | — |
“Treaty Rate” is the maximum withholding permitted under this treaty. The actual effective rate may be lower if domestic law provides a more favorable rate independently. “Statutory Rate (United Arab Emirates)” shows the rate that applies when no treaty benefit is claimed. Qualified dividend rate requires: Beneficial owner is a company holding >= 10% of voting stock.
Dividends
The general dividend rate of 15% applies to portfolio investors. A reduced rate of 5% is available when beneficial owner is a company holding >= 10% of voting stock. Without the treaty, the statutory withholding rate on dividends is 0%.
Source: United Arab Emirates Treaty Reference
Interest
Interest payments (bank interest, bonds, loans) are subject to 0% withholding under this treaty, compared to the 0% statutory rate. Interest is fully exempt from source-country withholding under this treaty.
Source: United Arab Emirates Treaty Reference
Royalties
Royalty withholding rates vary by the type of intellectual property. This treaty distinguishes 4 categories, with rates ranging from 10% to 10%.
Source: United Arab Emirates Treaty Reference
Pensions & Social Security
Private pension distributions are taxable only in the country of residence, with no withholding at source. Government social security benefits are exempt from source-country withholding.
Source: United Arab Emirates Treaty Reference
Comparative Context
🇦🇪United Arab Emirates's Network
Among United Arab Emirates's 21 active treaty partners, the 15% general dividend rate ranks 15th (median: 10%).
| Partner | Rate |
|---|---|
| Thailand | 10% |
| South Africa | 10% |
| Turkey | 12% |
| Australia (this treaty) | 15% |
| Canada | 15% |
| Switzerland | 15% |
| Germany | 15% |
🇦🇺Australia's Network
Among Australia's 48 active treaty partners, the 15% general dividend rate ranks 3rd (median: 15%).
| Partner | Rate |
|---|---|
| Brazil | 0% |
| Saudi Arabia | 5% |
| United Arab Emirates (this treaty) | 15% |
| Austria | 15% |
| Belgium | 15% |
| Canada | 15% |