Category Taxation in UAE

UAE Opens Tax Agent Registration

November 27, 2017 Taxation in UAE

VATABU DHABI – UAE’s VAT registrations are speeding up, with tax agents now being able to be officially registered.

Over the weekend the Federal Tax Authority of the United Arab Emirates opened up the process of registration for tax agents in the country.

The UAE will enact a Value Added Tax on the first day of 2018.

As the profession of tax agent is new in the UAE, the standards for registering as a tax agent has not been set in stone, and, currently, the only requirement is a Bachelor- or Master-level degree in tax, accounting or law from a “recognized educational institute”.

The VAT implementation process in the UAW has been progressing rapidly, as only weeks ago the registrations for businesses were opened up.

The FTA has stated that businesses must register for VAT by December 3rd, ...

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Drinks and Smokes Targeted for Tax in UAE

October 2, 2017 Taxation in UAE

Drinks CansABU DHABI – Drinking energy drinks and smoking cigarettes is about to become more expensive in the UAE.

On October 1st the United Arab Emirates began collecting sin-taxes on selected products deemed to be harmful to human health, with the newly raised funds being used to plug the growing deficits seen by the government over recent years.

The new taxes have come to be called “sin taxes” and will be levied on the sale of cigarettes, tobacco, soft drinks, and energy drinks.

The rate of the tax has been set at 100 percent for the sale of energy drinks and tobacco, and a smaller rate of 50 percent of soft drinks.

The “sin tax” is the precursor for further taxes to be enacted in the near future, with a 5 percent VAT to be levied from January next year on selected goods.

The new taxes ...

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UAE To Establish Tax Authority

October 25, 2016 Taxation in UAE

Tax Authority in the UAEABU DHABI – New legislation in the UAE will see a Federal tax Authority established by the end of the year.

On October 24th the UAE President Sheikh Khalifa Bin Zayed al-Nahyan issued a decree establishing the Federal Tax Authority, which will oversee tax measures throughout the emirates.

The new Federal Tax Authority (FTA) will be charged with establishing and maintaining an accurate database of taxpayers, with information on the tax obligations owed by each taxpayer.

The FTA will also issue clarifications, guides, and opinions on tax legislation at a federal level across the UAE.

In addition to interacting with taxpayers, the FTA will also coordinate tax efforts and discussions between the federal government, local governments, and taxpayers, while also representing the UAE at regional ...

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Tourist Taxes Launched in Abu Dhabi

May 31, 2016 Taxation in UAE

air travelMANILAABU DHABI – As part of an effort to source new tax revenues streams, the government of Abu Dhabi is now looking at taxing tourists.

From June 1st all visitors staying in Aby Dhabi will be required to pay two new taxes aimed at tourists.

The new taxes will consist of a AED 15 per room per night, and an additional charge of 15 percent of the total value of the hotel bill.

The government of Aby Dhabi claims that the set rates are in line with similar tourist taxes across the United Arab Emirates and other major tourist destinations around the world.

The tourism taxes are intended to help the government find new sources of tax revenues, as the national budget begins to decline with the fall of global oil prices.

The new tax on tourist accommodation is not the only measure taken to tax...

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Dubai Enacts Airport Departure Tax

March 31, 2016 Taxation in UAE

air travelMANILADUBAI – Flying out of Dubai will soon become slightly more expensive, as the local government looks to raise funds through a departure tax.

On March 30th the Crown Prince of Dubai Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum approved a new departure tax of AED 35 (approx. USD 9.50) to be paid by anyone flying out of the emirate of Dubai after June 30th 2016.

The tax is to be paid by every passenger on a flight from a local airport to a destination outside of the UAE, with the only exemptions being granted to cabin crew, children under the age of 2, and transit passengers who arrive and depart on the same flight.

The new tax is to be collected by airlines, and will passed to the airports, who subsequently pass it on to tax authorities.

The extra tax revenues arising from the ta...

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