The UAErecent tax changes and regulations federal government has exclusive jurisdiction to legislate in relation to the UAE’s taxation system. However, no federal tax laws have been established to date. Instead, most of the emirates enacted their own general income tax decrees in the late 1960s, known as the “tax decrees”. In practice, however, the tax decrees have not been enforced…
The wealth generated by Abu Dhabi’s significant hydrocarbons reserves has allowed the emirate to substantially increase its economic and political clout, both on a regional and a global level, over the past couple of decades, and although the Gulf region has faced a challenging economic environment since the second half of 2014 when oil prices began to slide, a more optimistic outlook for intern
This chapter contains an overview of the tax framework in which local and foreign investors operate in Abu Dhabi, as well as a look at the value-added tax system being developed across the GCC, a rundown of the social security contributions required for local staff and an outline of the double taxation treaties in place or on the way. This chapter contains a viewpoint from Dean Kern, Middle East Tax…
As a business centre for the region, the UAE continues to be highly relevant and attractive for investors for a number of reasons, including infrastructure, logistics and access to skilled labour. According to the PwC and World Bank “Paying Taxes 2016” study, the UAE is ranked joint first in the world in terms of the ease of paying taxes. In a region where more than 50% of government revenues come…
This chapter contains an overview of the tax framework in which local and foreign investors operate including an outline of the business and tax incentives offered by the free zones and a rundown of the Wages Protection System. This chapter contains a viewpoint from Dean Kern, Middle East Tax and Legal Services Leader, PwC.…
The UAE federal government has exclusive jurisdiction to legislate in relation to UAE taxes. However, no federal tax laws have yet been established. Instead, most of the emirates enacted their own general income tax decrees in the late 1960s (tax decrees). In practice, the tax decrees have not been enforced to date and, consequently, tax is generally not levied under the decrees on firms operating…
Subdued oil prices prompted a trimmed federal budget for 2016 as the UAE, like other countries in the region, tightened its belt in response to falling hydrocarbons revenues. However, a sustained focus on economic diversification and targeted investment in Abu Dhabi’s key non-oil sectors in recent years means the emirate is well positioned to weather the storm. Looking forward, plans for future
Outside of hydrocarbons, construction and manufacturing represent the biggest GDP contributors in the emirate, with the construction sector poised to enter a period of renewed expansion and manufacturing identified as a key area for future growth, leveraging the emirate’s natural resources, growing downstream capabilities and strategic location. Elsewhere Abu Dhabi’s financial sector continues
The federal government of the UAE has not promulgated any tax laws. Most of the individual emirates have issued corporate tax decrees, but, in practice, taxes are only imposed on oil- and gas-producing companies at rates set forth in their government concession agreements, and on branches of foreign banks at rates set out in specific tax decrees or fixed in agreements with the rulers of the emirates…
This chapter contains an overview of the tax framework in which local and foreign investors operate in Abu Dhabi including a look at the limited tax laws in place and an outline of the incentives available for companies in the free zones.…