(Bloomberg) --
Israel and the United Arab Emirates have signed a double taxation treaty, Israel's Finance Ministry said on Monday, the latest move to normalize ties less than a year after the countries signed a historic accord.
The agreement will accelerate the development of economic relations and contribute to prosperity in both countries, Israeli Finance Minister Israel Katz said on Twitter.
The agreement adds to a string of accords signed between the two countries in what may be a sign that this month's 11-day conflict with Hamas in Gaza won't be a big setback for efforts to build ties. There was no immediate comment from the UAE, which faced criticism online for its normalization deal during the fighting.
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Treaties for the avoidance of double taxation are bilateral agreements in which the contracting states establish rules that will apply to income and assets that are connected to the two countries, according to the Finance Ministry's website. The Israel-UAE agreement also refers to the exchange of information between the two nations.
The treaty is subject to approval by Israel's parliament and cabinet, and is expected to go into effect on Jan. 1, 2022. Israel is party to 58 double taxation treaties, the Finance Ministry said.
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