Dubai’s Department of Finance steps up efforts to improve the emirate’s business environment
The Government of Dubai’s Department of Finance (DOF) said that in line with instructions from His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, the Department is stepping up its efforts to further strengthen an enabling, growth-friendly business environment for companies registered and operating in the emirate, especially small and medium enterprises (SMEs). The Department’s efforts, which are in line with the framework of financial federal laws, are aimed at enabling businesses to achieve greater success, it said.
The Finance Department noted that corporate taxes have been systematically applied in many countries around the world in a manner that serves the interest of the state and takes into account the interests of companies in the long run. The federal tax announced by the UAE Ministry of Finance on Monday, which will have a rate of nine per cent, is considered competitive and reflects best practices, the department said. It is one of the lowest in the world and the lowest in the region.
His Excellency Abdulrahman Saleh Al Saleh, DOF director general, disclosed the government’s DOF programme to look into all current and emerging variables related to companies operating in Dubai.
“At the behest of our wise leadership and as part of the Government Revenue Structuring Programme, DOF is reviewing business levies that contribute, along with other sources of government revenue, to fund government projects. The new reality requires us to examine and review the government levy system to promote business and entrepreneurial projects,” said Al Saleh.
“The levies imposed by the Dubai government on commercial activities are affordable in the absence of a corporate tax. However, once this tax is introduced, we will seek, under the supervision of the General Secretariat of the Executive Council, to examine these levies and consider reducing them gradually in line with emerging trends,” Al Saleh added.
DOF’s government revenue structuring programme includes a comprehensive study of levies levied by all government entities within the government’s overall budget to meet the emirate’s desire to achieve sustainable government revenue development and bring it in line with global best practices. The programme aims to achieve revenue sustainability and enhance the emirate’s fiscal policy by supporting economic growth and the business environment.
In support of businesses in free zones, the Dubai government confirms the continuation of the current corporate tax exemptions granted to companies established in the emirate’s free zones that comply with all regulatory requirements and do not conduct commercial activities in the UAE mainland.
Follow our Telegram Chanel