Bringing much relief to the earning class in UAE, the Emirate has dismissed plans to start taxing individual incomes. However it is still considering proposals to introduce a tax on remittances, according to the country’s minister of state for financial affairs.
Obaid Humaid Al Tayer told reporters at the Federal National Council on Tuesday: “There is no intention and no plans to impose taxes on the income of individuals in the UAE.”
Al Tayer warned that if individual incomes were taxed, then it would hike up companies’ wage costs and reduce the attractiveness of the UAE as a regional business hub. As a result, he said, the authorities have ruled out introducing income tax in the UAE.