Corporate Tax and VAT in the UAE to increase state revenues, the UAE is likely to complete the drafting of laws introducing corporate tax and value-added tax in the third quarter of this year, a senior Ministry of Finance official has said.
“The blueprint of the corporate tax law and the value-added tax law has been discussed with local and federal governments,” Younis Haji Al Khouri, undersecretary at the ministry, was quoted as saying by Gulf News.
He added that authorities were still evaluating the social and economic impact of the laws, but drafting was expected to be finished “very soon, within the third quarter of this year”.
However, he declined to comment on the proposed tax rates or when they may be implemented. Introducing corporate tax and VAT in the UAE, which has promoted its low-tax environment to investors, would be a major shift in policy, and politically sensitive, the report said.
In the past, officials have claimed that VAT is unlikely to be introduced before other countries adopt it too. Otherwise, the UAE’s competitiveness could be hurt and there might be a surge in smuggling across borders, said the Dubai-based news portal.
A ministry report has pointed out that the UAE cabinet had approved versions of the two draft bills, reported Gulf News.
UAE to stop cash deposit and withdrawal on Saturdays
The Central Bank of the UAE has announced that starting September 5, all banks and exchange houses will stop providing cash deposit and withdrawal service to banks and exchange houses on Saturday of each week.
“This service, however, shall continue throughout the rest of the weekdays from Sunday to Thursday. This decision has been made after coordination with the UAE Banks Federation,” the Central Bank was quoted as saying by WAM.