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Glossary

Double taxation treaty (DTT)

What it is

An agreement between two countries that prevents the same income being fully taxed twice. The UK has treaties with most Arab states (including the UAE, Saudi Arabia, Qatar, Kuwait, Egypt and others), setting which country taxes what and providing relief or credits.

Why it matters

A treaty can reduce or eliminate double taxation on dividends, salary or other income you take from your UK company — but you usually have to claim relief correctly, not assume it applies automatically.

Common mistake

Assuming a treaty makes income automatically tax-free. Relief usually has conditions and may need to be claimed.

Official source

GOV.UK — Tax treaties

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Disclaimer

General educational guidance only — not legal, tax, accounting, immigration, investment or financial advice. We don't guarantee the information is complete, current or suitable for your situation. Always check official sources (GOV.UK, Companies House, HMRC, the relevant professional body) and speak to a qualified professional before acting. Last reviewed: June 2026.