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:
Kind Regards
Cardwell Advisory Desk
