A uniform corporate tax is intended to be imposed in the United Arab Emirates

05.04.2012 The United Arab Emirates plan to enter a uniform rate of a corporate tax for all seven emirates.

Now each emirate has the rate of a corporate tax which is generally applied to the oil companies and banks. Other companies use free economic zone for their registration. Each free economic area is regulated by separate state authority which registers the enterprises and grants them licenses in the United Arab Emirates.

Expert’s opinion

«As present there is no uniform tax legislation in the United Arab Emirates. In the country, besides a corporate tax, also there are not for the whole state uniform VAT, the tax of income of individuals, a tax on a gain of the capital and some other. Each Emirate is regulated by its own internal normative acts.

Nevertheless, free economic zones are really attractive from the point of view of tax planning. Many companies have the minimum rate of a corporate tax.

Possibly, now the government decided to raise the country status, having entered a uniform rate of a tax for all emirates. The possibility of control of replenishment of means in the state budget thereby will increase.

On the basis: www.government.ae

Andrianova Irina ( the leading lawyer of legal support and banking consulting department of Honest & Bright )