Category Taxation in UAE

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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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...

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