The United Arab Emirate is willing to impose taxes but a decision on that would first be evaluated thoroughly by the country’s government prior to any implementation, said the Minister of Economy this week.
Any final decision on all issues included a process within the government. It will be discussed, evaluated on how it effects the nation’s competitiveness and other important things related to the decision making process, added the Minister.
The Minister, Sultan Bin Saeed Al Mansouri said the country was member of the GCC and a common policy should be made. Therefore, if this in the future serves the government of the UAE, and the people it could be open to taxes just as other countries have been.
The minister failed to elaborate on the type of taxes that are being considered by the government nor any timeline.
For some time, the UAE has considered imposing taxes on corporations, on remittances and a Value Added Tax, along with a few others.
The UAE possibly imposing taxes has gained some importance due to the ongoing problem with low prices of oil producing a drop in the amount of revenue the country is receiving.
In August, the UAE Ministry of Finance said that the country was conducting a number of studies on implementing a VAT law, as well as other countries in the GCC.
According to government officials, the ministry conducted a number of feasibility studies related to taxation and its economic as well as social implications. The latest was in 2014, which was finished in the early part of 2015.
The Ministry of Finance announced that the studies would determine what impact the taxes would have on growth of the economy and the global competitiveness of the country.
Once there is a final agreement reached on imposing a VAT law, an announcement would be made, said the finance ministry.
Those sectors as well as entities concerned with the imposing of a VAT law would have close to 18 months after the law’s enactment to implement as well as fulfill all requirements of their new tax obligations.