As the VAT is expected in the Gulf Cooperation Council states like Saudi Arabia and the UAE, the companies are urged to set up the formalities before January 2018.
With only less time until the VAT will be imposed in the UAE, the financial authorities made an announcement through which they solicit enterprises, local and foreign, to align with the requirements for the new tax in January 2018.
The VAT Law which was planned a few years ago was finally accepted and published. Therefore, starting with January 2018, numerous goods and services will be displayed with a new tax, in this case, the VAT.
Considering the IMF piece of advice, the countries part of the Gulf Cooperation Council have announced that new measures will consolidate the fiscal sector. Among these, the UAE is ready to implement their reforms in the non-oil revenues.
Authorities in the UAE have decided to give penalties to all companies which do not comply with the tax legislation in the country. In this matter, depending on the tax which has not been paid, the penalty will count third times the levy.
With a two-year negotiation, the authorities in Dubai have established the goods which are going to be subject to taxation starting this October.
There are cases where a bank loan is necessary for other types of investments in a company. There are numerous financial institutions in Dubai which can offer customized credits in accordance with the clients’ needs.
A tax haven like Dubai is extremely appreciated by foreign and local investors who successfully place their activities on the market, especially in the well-known free trade zones.
The tax residency or the tax domicile certificate is issued by the Ministry of finance in the UAE and regards the onshore companies with a confirmed residence in Dubai, with a validity of one year.
Audits are legal procedures meant to attest the activities and operations of a company, respecting the Commercial Law in the country. The auditors are the ones who need to verify the company’s documents.
Due to its attractive tax system, Dubai is a preferred destination for entrepreneurs. The free zones in Dubai have their own taxation system and authorities, considered by many the suitable places to start their activities.
The VAT in the UAE will be imposed in January 2018 with a few exemptions. The residential real estate is already on the list of products, goods, assets, and services where the value added tax won’t be a supplementary fee.
Before establishing a business in the Emirates, it is recommended to properly analyze the market and to consider the possible mistakes which can appear on the way.
Although certain products and services are exempt from the value added tax which will enter into force next year, the tobacco and some particular beverages will not be exempt from taxation.
Although the introduction of the VAT in the UAE was announced in time, there are question marks everywhere, especially from companies which are interested if the prices need to be increased when implementing the tax, or not.
The financial authorities in Dubai have settled the VAT rate for particular goods and services which are going to be levied starting next year in January. This kind of tax will also be imposed on services offered in Dubai’s airports.
After numerous debates and discussions with the IMF and other important financial organizations in the world, it seems like the UAE agreed on the VAT, a tax which will be imposed starting with January 2018.
The UAE will implement the VAT tax rate starting with January 2018, according to the requests and suggestions of the IMF (International Monetary Fund).
Improving the tax revenue collection in the Gulf Cooperation Council (GCC) has been on a debate by the International Monetary Fund (IMF) that considers a corporate tax of 15% might help in this matter.
The VAT for businesses in the UAE was on the debate last year by financial and economic authorities in charge, and according to the latest news, this kind of measure will be adopted on January 2018.
Businesses in the UAE are more than concentrated on developing their operations and preserving their situation and status on the market.
UAE is recognized for its desirable taxation system, as it is the state that enforces few taxes on individuals and enterprises.
The value added tax was introduced for the first time in France and after that, many other republics started to adopt this taxation system.
Dubai is a great destination for emigrants from across the world, not just for the chances it promises, but also for the attraction of living a ‘tax-free’ life.