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Wed 9 Sep 2015 11:33 AM

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Draft law on UAE corporate tax being prepared, says gov't official

Talks also taking place with GCC members about possible introduction of a coordinated VAT

Draft law on UAE corporate tax being prepared, says gov't official

The Ministry of Justice and several units of local government are in discussions regarding a draft law on corporate tax, a senior finance official has said.

Younis Haji Al Khoori, the undersecretary of Ministry of Finance, told Khaleej Times that a draft law on corporate tax is under discussion with local governments and the Ministry of Justice. Al Khoori added that there are also talks with GCC member nations about the possible introduction of a coordinated VAT.

In a report last month, the executive board of the IMF recommended the UAE implement a special excise on cars and broaden the corporate income tax, as well as push ahead with the planned tax on consumer goods, to help counter oil revenue losses.

The organisation told the country’s economists the taxes could generate an additional 7.4 percent of non-hydrocarbon domestic product, replacing some of the $42 billion the UAE is expected to lose from oil export revenues this year, compared to 2014.

The IMF recommended a 15 percent special excise on cars and extending the existing 10 percent corporate income tax to more companies.