UAE mulls tax on corporations: report

The United Arab Emirates’ Ministry of Finance is considering imposing a new tax on corporations operating in the country, the UAE-based Al-Bayan newspaper reported on Tuesday, citing Younis Al-Khouri, undersecretary at the ministry.

The ministry is in talks with local and federal authorities to develop a primary draft law for the proposed tax.

The draft law will define the application framework and mechanism, Al-Khouri said.

A tax procedures law, approved by the Federal National Council last month, will serve as the main framework for all future tax laws and related-transactions in the UAE, he added.

The ministry has also completed the legislative study of the planned value-added tax (VAT) and selective tax.

The UAE Federal Tax Authority (FTA) has finalized procedures required for introducing a 100 percent selective tax on tobacco and energy drinks, and a 50 percent tax on soft drinks— both of which will be applied in Q4 2017, Al-Khouri confirmed in the report.

The emirates, along with five other members of the Gulf Cooperation Council (GCC), will implement VAT at 5 percent by January 2018, Argaam earlier reported.