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## Protocol
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At the moment of signing the Convention between the Government of the United Arab Emirates and the Government of the United Kingdom of Great Britain and Northern Ireland for the avoidance of double taxation and the prevention of tax evasion and avoidance with respect to taxes on income and on capital gains the undersigned have agreed that the following provisions shall form an integral part of the Agreement:
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With reference to the Convention as a whole
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It is understood that the Convention does not restrict in any manner any benefit (e.g. exclusion, exemption, reduction, deduction, credit or other allowance) now or hereafter accorded (a) by the laws of either Contracting State; or (b) by any other agreement between the Contracting States.
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With respect to Article 4, paragraph 4 (Resident) It is understood that in considering cases which fall within paragraph 4 of Article 4 of the Convention the competent authorities shall have regard to: (i) where the senior management of the person is carried on; (ii) where the meetings of the board of directors or equivalent body are held; (iii) where the person’s headquarters are located; (iv) the extent and nature of the economic nexus of the person to each State; and (v) whether determining that the person is a resident of one of the Contracting States but not of the other State for the purposes of the Convention would carry the risk of an improper use of the Convention or inappropriate application of the domestic law of either State.
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This list of factors is not exhaustive.
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The competent authorities shall apply the provisions of paragraph 4 of Article 4 on a case by case basis. As the facts upon which an agreement is reached may change over time the competent authorities may revisit agreements, particularly where there are significant changes in the relevant facts.
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With respect to Article 8 (Shipping and air transport) It is understood that profits from the operation of ships or aircraft by an enterprise of a Contracting State in international traffic include:
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(a) profits from the rental on a bareboat charter basis of ships or aircraft, if the activity is ancillary to the enterprise’s main operations; (b) profits from the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) used for the transport of goods or merchandise, if those activities are directly connected or ancillary to the enterprise’s main operations; (c) the selling of tickets on behalf of other transportation enterprises, if such sales are directly connected with voyages aboard ships or aircraft that the enterprise operates; (d) the provision of goods and services by engineers, ground and equipment maintenance staff, cargo handlers, catering staff and customer services personnel, if such provision is directly connected or ancillary to the enterprise’s main operations; (e) Investment income which arises from deposits, bonds, shares and securities made or acquired as an integral part of the carrying on of the enterprise’s main operations.
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With respect to Articles 10(6), 11(8) and 12(5) of the Convention,
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It is understood that in the event that a resident of a Contracting State is denied relief from taxation in the other Contracting State by reason of one of those provisions, the competent authority of that other Contracting State shall explain the reasons for this to the competent authority of the first-mentioned Contracting State. In the event of any difficulties as to the application of these paragraphs, the competent authorities of the Contracting States shall endeavour to resolve these by mutual agreement within the framework of Article 23 (Mutual agreement procedure) of the Convention.
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With respect to Article 13 (Capital gains),
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It is understood that paragraph 5 includes capital gains from the alienation of shares or comparable interests in a company, other than those referred to in paragraph 2 derived by a resident of a Contracting State, including Government financial institutions or investment companies of that State.
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With respect to Article 22 (Non-discrimination),
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It is understood that nothing in this Article imposes a legal obligation on a Contracting State to extend to the residents of the other Contracting State, the benefit of any treatment, preference or privilege which may be accorded to any other State or its residents by virtue of the formation of a customs union, a free trade area or by virtue of any regional or sub-regional arrangement relating wholly or mainly to taxation, to which the first-mentioned State may be a party pursuant to the practice of either Contracting State.
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It is further understood that this Article does not prevent the provision by a Contracting State of financial assistance (such as “bail-outs”) to companies resident in that state operating in the financial sector.
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Done in duplicate at Dubai this 12th day of April 2016 in the English and Arabic languages, both texts being equally authentic. In case of any divergence between the texts, the English text shall prevail.
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For the Government of the United Kingdom of Great Britain and Northern Ireland For the Government of the United Arab Emirates
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J O’NEILL OBAID BIN HUMAID AL TAYER