The UAE is not planning to introduce any changes in its corporate tax structure this year. Neither will it implement an income tax nor raise the value added tax (VAT), Younis Haji Al Khouri, Undersecretary of the Ministry of Finance, told Zawya.
"We have declared several times that the government doesn’t have any plans to introduce personal income tax. Also, with VAT, there will be no changes," Al Khouri told Zawya on the sidelines of the World Government Summit in Dubai.
The Federal Tax Authority introduced a 5% VAT on the supply of some goods and services in the UAE in 2018.
Al Khouri also said that the Organisation for Economic Co-operation and Development (OECD) had recently posted their assessment of preferential tax regimes and had rated UAE's corporate tax regime for free zones as “not harmful”. "We maintain that excellent relation with the OECD and maintain the tax administration in the best possible manner," he noted.
The UAE introduced the corporate tax regime in 2023 as a strategic move to align with its long-term objective to diversify its economy.
(Writing by Seban Scaria firstname.lastname@example.org; editing by Daniel Luiz)