Category Taxation in UAE

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 ...

Read More

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...

Read More

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...

Read More

Gulf States Will See 5% VAT by 2019

February 25, 2016 Taxation in UAE

No taxes for business in the UAEDUBAI – The countries of the Gulf Cooperation council have agreed to take the landmark step of introducing a cross-border VAT in order to gather non-oil revenues.

By the start of January 2019 all the countries of the Gulf Cooperation Council will see the implementation of a Value Added Tax, according to a statement made on February 24th in Dubai by the UAE Minister of State for Financial Affairs Obaid Humaid Al Tayer.

The new VAT will be implemented and enforced equally across the UAE, Bahrain, Kuwait, Oman, Qatar, and Saudi Arabia.
The new tax will be set at a rate of 5 percent, and will be levied on the sale of all products in the countries, with the only exemptions being healthcare, education, bicycles, and 100 basic food items.

The tax is expected to lead to the collection of an extr...

Read More

UAE May Soon Implement New Taxes

October 27, 2015 Taxation in UAE

DUBAI – The UAE may soon need to implement VAT or corporate taxes in order to compensate for falling oil revenues.

As the UAE faces decreasing tax revenue in the face of an ongoing rut in global prices for oil, the government has indicated that in the near future extra taxes may be implemented in order to continue paying for public services.

The UAE has traditionally been a major supplier of oil to the international market, with the sales being the most significant source of revenues for governments of the UAE.

However, as the international prices of oil have stayed at USD 50 or below for a significant amount of time, the governments are now strapped for funds.

In regards to this potential shortage of funds, the Minister of the Economy of the UAE Sultan Bin Saeed Al Mansouri said that tax...

Read More