1989 - 2018 29 years in business Sunday, 22nd July 2018

UAE Report On VAT, Corporate Tax Developments


Dear Clients, 

 

The Finance Ministry of the United Arab Emirates (UAE) has provided a progress update on

The adoption of a value-added tax Gulf Cooperation Council (GCC) level.

 

The GCC states – Bahrain, Kuwait, Qatar, Saudia Arabia, and the UAE – previously

Agreed to introduce a VAT simultaneously, however, these negotiations are still ongoing,

As GCC countries have yet to agree on a tax rate and a list of exemptions, the finance Ministry

Said.

 

The UAE is currently undertaking studies on the impact of the VAT and is drafting three

Domestic laws, including a parent VAT law, which is to include the features agreed at GCC

Level. The other two laws could govern VAT procedures and establish a federal VAT authority.

 

The Ministry  said the studies it is undertaking look at the potential social and economic

Implications of introducing a VAT, including reviewing the impact of a VAT on the UAE’s

Global competitiveness. Alongside this, the Government is also drafting a new corporate tax

Law, It said a corporate tax rate has yet to be agreed.

 

The Government said that as an agreement is reached, an announcement will be made

Immediately, to allow companies 18 months to prepare for the VAT and 12 months to prepare

For a new corporate tax regime.

 

Should you require any further information, please do not hesitate to contact us at:

info@cardwell-capital.com

 

Kind Regards

Cardwell Advisory Desk
 

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