Diagnostic Tool
Tax Withholding
Because the US and UAE lack a comprehensive DTAA, standard FDAP (Fixed, Determinable, Annual, Periodical) income is subject to gross withholding.
Tax Liability Model
Applicable WHT Rate
30%
Withheld at Source
-$150,000
Net Receipts
$350,000
Note: The Portfolio Interest Exemption is a powerful tool to achieve 0% WHT on US debt, provided the UAE investor owns less than 10% of the voting stock of the US borrower and debt is registered properly.