On February 11, 2025, the Government of the Russian Federation published Directive No. 280-r, approving the signing of a new Double Taxation Avoidance Agreement (DTAA) between Russia and the UAE. The agreement was signed on February 17, 2025, during the First Meeting of the Russia-UAE Financial Dialogue.

The new DTAA aligns with the standard model of international tax treaties. It will apply to both individuals and legal entities, regulating the taxation of income and capital.

If ratified in 2025, the provisions of the DTAA will take effect from January 1, 2026.

The tax practice team at VERBA LEGAL, including Counsel Evgenia Zainchukovskaya, Senior Associate Andrey Sheptiy, and Junior Associate Altana Lidzhieva, has prepared an analysis of the key provisions of the DTAA and the potential tax implications of removing the UAE from the Russian Ministry of Finance’s "blacklist" following the conclusion of the agreement.