By: Amr Adel
Dubai-Mubasher: Imposing corporate income tax in the UAE is still under preliminary study to measure its economic and social impacts, said Obaid Humaid Al Tayer, UAE Minister of State for Financial Affairs.
On the sidelines of a press conference in Dubai, he added that free-tax “UAE has neither a time frame nor draft law for building a tax system.”
The minister went on to say that there are no current plans to impose taxes on individuals in the UAE.
Commenting on the GCC’s framework agreement on the implementation of value-added tax (VAT) across the region’s countries, Al Tayer said it will be finalised in June 2016, expecting it to take effect in the period between 1 January 2018 and 1 January 2019.
The UAE will impose 5% VAT while exempting 100 food items, bicycles, healthcare and education.
The minister added that the country is expected to generate AED 12 billion from tax revenues.
Translated by: Julian Nabil
