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What is the interest withholding rate between United Arab Emirates and United States?

The United Arab Emirates-United States tax treaty reduces the withholding rate on interest payments to 0%. This means interest paid between residents of these two countries is exempt from withholding tax at source. This is particularly beneficial for cross-border debt financing and bank deposits. The 0% rate still requires proper documentation β€” it does not apply automatically. Interest is fully exempt β€” United Arab Emirates has 16 such treaties in its network.

Network Comparison

United Arab Emirates

Rank 15 of 21 active treaties (lowest rate = #1)

Lower rates with: Pakistan (0%), Saudi Arabia (0%), Singapore (0%)

Higher rates with: South Africa (0%), Canada (10%), Japan (10%)

United States

Rank 1 of 64 active treaties (lowest rate = #1)

Higher rates with: Austria (0%), Belgium (0%), Canada (0%)

Sources

Data last reviewed: 2026-04-07

Important: Treaty rates require proper claim forms (e.g., IRS Form W-8BEN for U.S. treaties, HMRC DT-Individual for U.K. treaties, CRA Form NR301 for Canadian treaties) filed before payment. Limitation on Benefits (LOB) provisions may restrict eligibility. A 0% withholding rate does not mean no tax β€” the residence country may still tax the income. This is not tax advice.

Related Questions: United Arab Emirates - United States