UAE Confirms It Will Not Tax Individual Income

By ExpatBriefing.com Editorial 26 February, 2014

The United Arab Emirates (UAE) does not plan to introduce an income tax for individuals, Finance Minister Sheikh Hamdan bin Rashid Al Maktoum has confirmed.

On the other hand, the country is exploring the possibility of taxing companies and introducing fees for newly introduced services at federal ministries and bodies, Sheikh Hamdan, who is also the deputy ruler of Dubai, said. Companies in other Gulf Cooperation Council (GCC) states are subject to taxes, he pointed out.

The UAE, seeking to broaden its revenue base away from oil, is also considering various forms of indirect taxation, such as a sales tax and duties on harmful commodities like tobacco. The government would announce any new taxes once an agreement is reached with relevant parties, Sheikh Hamdan said.

The finance minister also noted that the government is looking into taxing the remittances of expatriate workers, a measure which is also being studied by other GCC countries. Expatriates, lured by the UAE's attractive tax regime, make up 80 percent of its population. Last year workers in the UAE sent a net AED45.1bn (USD12.3bn) abroad, an increase from AED41.2bn a year earlier.

The UAE's federal budget for 2014-16 is worth an estimated AED140bn (USD38.1bn), up from the AED122bn of the 2011-13 budget. The government will pump an estimated AED23.8bn into new projects between 2014 and 2016.

Tags: Individuals | United Arab Emirates | Finance | Tax | Sales Tax | Budget | Corporation Tax | Fees | Gulf Cooperation Council | Individual Income Tax | Dubai | Services | Expats | Money Transfers | Working Abroad | Work | Working Abroad | Working Abroad |

 





News Archive