02 November 2016
The United Arab Emirates (UAE) has no plans to introduce new taxes on individuals and governmental services as a way to boost revenues as a result of the low oil price, a finance ministry official said on Tuesday.
On corporate tax, finance ministry under-secretary, Younis Al Khouri said the ministry is still studying the potential social and economic impact and the issue is being discussed at the cabinet as part of a new comprehensive taxation system. Read more here.
Tax analysts had previously told Zawya they expect the UAE to be the first Gulf country to implement a new 5 percent value added tax (VAT) system, agreed upon by all six Gulf Cooperative Council members last February. The VAT is expected to start in the GCC by January 2018. Read more here.
Some people wrongly believe the UAE is a tax-free country, in fact the emirates does have some taxation policies in place. Here is a guide to the current taxation system in the UAE:
- Foreign banks are taxed 20 percent of their net profit.
- Oil companies are taxed between 55 to 85 percent.
- Hotels and entertainment facilities are taxed up to 10 percent.
- A 5 percent annual municipal tax is applied on rental residential properties.
- A 2 percent tax is applied to property registration fees in Abu Dhabi, while the rate is 4 percent in Dubai.
© Express 2016
The United Arab Emirates (UAE) has no plans to introduce new taxes on individuals and governmental services as a way to boost revenues as a result of the low oil price, a finance ministry official said on Tuesday.
On corporate tax, finance ministry under-secretary, Younis Al Khouri said the ministry is still studying the potential social and economic impact and the issue is being discussed at the cabinet as part of a new comprehensive taxation system. Read more here.
Tax analysts had previously told Zawya they expect the UAE to be the first Gulf country to implement a new 5 percent value added tax (VAT) system, agreed upon by all six Gulf Cooperative Council members last February. The VAT is expected to start in the GCC by January 2018. Read more here.
Some people wrongly believe the UAE is a tax-free country, in fact the emirates does have some taxation policies in place. Here is a guide to the current taxation system in the UAE:
- Foreign banks are taxed 20 percent of their net profit.
- Oil companies are taxed between 55 to 85 percent.
- Hotels and entertainment facilities are taxed up to 10 percent.
- A 5 percent annual municipal tax is applied on rental residential properties.
- A 2 percent tax is applied to property registration fees in Abu Dhabi, while the rate is 4 percent in Dubai.
© Express 2016
