'UAE study­ing pro­posal to in­tro­duce VAT'

The Pak Banker - - BUSINESS -

ABU DHABI: The Min­istry of Fi­nance has said that the UAE has been con­duct­ing a se­ries of stud­ies on the im­ple­men­ta­tion of a draft VAT (Value Added Tax) law, along with the other GCC coun­tries. The draft law is still pend­ing and un­der ne­go­ti­a­tion due to the ab­sence of a fi­nal agree­ment be­tween GCC coun­tries on the tax rate and a list of tax ex­emp­tions, The Min­istry of Fi­nance said in a state­ment on Wam.

"The MoF has con­ducted sev­eral fea­si­bil­ity stud­ies on tax­a­tion and its so­cial and eco­nomic im­pli­ca­tions, the latest be­ing in 2014, which was com­pleted in early 2015. The stud­ies will de­ter­mine the im­pact of taxes on the growth of the re­gional econ­omy and UAE's global com­pet­i­tive­ness," the Min­istry of Fi­nance said.

An an­nounce­ment will be made once a fi­nal agree­ment on im­pos­ing a VAT law is reached. Con­cerned sec­tors and en­ti­ties will have around 18 months af­ter the en­act­ment of the law to im­ple­ment and ful­fill the re­quire­ments of their tax obli­ga­tions. With re­gards to cor­po­rate tax law, the Min­istry said it con­ducted a num­ber of stud­ies on the ef­fects of im­pos­ing taxes in the UAE and pre­sented it to rel­e­vant author­i­ties. The draft law is still un­der study with re­gards to the tax rate to be im­posed. Ac­cord­ing to the min­istry, de­vel­op­ments on the draft law on cor­po­rate tax will be an­nounced once com­pleted to al­low con­cerned en­ti­ties a time limit of no less than a year to fully pre­pare for the im­ple­men­ta­tion and ful­fill­ment of their tax obli­ga­tions, af­ter the ap­proval and is­suance of the law.

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