NewsTop StoriesUAE

UAE makes it official: VAT to be implemented from 2018

Value added tax will be introduced to the UAE from 2018 at a rate of 5 per cent, while studies into a possible corporation tax are also under way.

Obaid Humaid Al Tayer, the Minister of State for Financial Affairs, said that the government was in the initial stages of examining the social and economic impact of such a tax as well as how it might affect competitiveness.

He made the disclosure at a press conference with Christine Lagarde, the IMF’s managing dir­ector, in Dubai. He said: “There is no time frame for implementing this tax and no law or draft law has been stipulated.”

Mr Al Tayer announced at the same event that the UAE would introduce value added tax from January 1, 2018, at a rate of 5 per cent. A GCC-wide framework for VAT is expected to be concluded by June, he said.

GCC countries have until January 1, 2019, to implement the levy. It has been previously reported that 150 food items, education and health care would be exempt from the levy.

Despite the zero-tax environment acting as a significant draw for companies looking to the UAE, Ms Lagarde played down the potential effect of corporation tax on business acti­vity in the country.

“The localisation and development of investment by companies … is not predominately driven by a tax rate,” she said.

The IMF chief acknowledged it may play a part, but that it was just one factor to consider.

 

 

 

 

Courtesy: The National

NMTV

NMTV was launched in the year 1999, and is Maharashtra only accredited 24-hour, 7-day-a-week local cable news station of Navi Mumbai airing news bulletins and programs in English, Hindi and Marathi. NMTV represents the state-of-the-art in local television news coverage, delivering on a commitment of responsible and community-oriented journalism on an around-the-clock basis.

Related Articles

Back to top button
Close
Close