The tax treaty between the United Arab Emirates (U.A.E.) and Cyprus entered into force 2 April 2013 and applies from 1 January 2014. Taxes Covered The treaty covers U.A.E. income and corporate taxes, and Cyprus  income, corporate, capital gains and special contribution for the Defense of the Republic taxes. Withholding Tax Rates Dividends, interest and royalties are taxable only in the State of residence. Double Taxation Relief Both countries use the credit method to eliminate double taxation.