Recently, Palestine ratified the pending Income Tax Treaty with UAE.  The Treaty, signed on 24 September 2012 in Abu Dhabi is the first treaty of its kind between the two countries. The treaty provides that dividends, interest and royalties are only taxable in the recipient's state of residence. The treaty will enter into force 30 days after the ratification instruments are exchanged and will apply on the 1st day of the month following the month in which ratification instruments are exchanged.