Tax Breaks For Dubai Hotels

September 30, 2013 Taxation In AsiaTaxation in UAE

Dubai HotelsDUBAI – Dubai intends to lure more mid-range hotels into the city using a new tax break.

While giving a speech at The Hotel Show in Dubai on September 29th the director general of the Dubai Department of Tourism and Commerce Marketing Helal Saeed Almarri announced that the government will soon drop the 10 percent municipality tax normally levied on the nightly rate of rooms in hotels in Dubai.

The tax break will be granted only to three-and four-star hotels for a period of four years from the day that building consent is issued.

Applications for the tax break will only be open for the next three years.

Helal Saeed Almarri explained that the time limits of the tax break are intended to encourage hotel operators to “… bring forward their construction timelines, creating more three and four star hotel rooms in Dubai more quickly.”

The tax break is also expected to encourage the building of hotels across various locations in the city, and not just in traditionally desirable spots such as near the beach.

The new tax break is a step towards fulfilling Dubai’s aim of doubling the number of arriving tourists by the year 2020, a goal, which according to Helal Saeed Almarri, requires a wide range of hotel classes to be available.

Photo by Bryan K. Harris