The UAE Minister of State for Financial Affairs Obaid Al-Tayer just announced that the UAE has no intentions to increasing the VAT in the next five years, after there was an increase in many commodities’ prices following the five percent increase last January.
“If you’re referring to the next five years, we don’t see anything [relating to] increasing the VAT rate or the excise rate. I also want to confirm that there aren’t any studies or any legislation regarding introducing income tax,” Al-Tayer told reporters in Dubai on Saturday.
“I also want to confirm that there aren’t any subsidies or any legislation or any legislation regarding introducing income tax,” he added.
He also said that the UAE’s Ministry of Finance is still working on introducing corporate tax, but is in very early stages of that.
“At the time being, we are not about to implement the corporate tax, but we are studying the possible tax framework. We are in the early stages of studying the tax legislation,” Al Tayer said.
The UAE government has published a website concerning everything people need to know about the VAT.