Last Updated on February 2, 2022 by livelydubai
It was reported today, Tuesday, by the Dubai Government Media Office that Director General of Government Finance Abdul Rahman Saleh Al Saleh said that the emirate is considering whether or not it may gradually reduce government fees following the introduction of a federal tax on business profits.
On Twitter, he said, “We will be keen to investigate government fees and research the prospect of gradually reducing them in line with the new reality, under the supervision of the General Secretariat of the Executive Council of Emirati Dubai.”
From June 1, 2023, a federal corporate income tax will be implemented by the UAE Ministry of Finance. However, it will be set at a low rate of nine percent in order to keep enterprises competitive.
Al Saleh disclosed that the Dubai government’s finance department has a program to investigate all elements that could affect companies’ operations, under the direction of rational leadership, in an effort to ensure a smooth transition for all businesses operating in the emirate.
As a result of the new situation necessitating study of the government fee system in order to facilitate business and projects, he explained that the department is currently looking into the fees imposed on companies that contribute, along with other sources of public revenue, to the financing of government projects. entrepreneurial.
Even while fees on commercial operations are allowed in the absence of a corporate profit tax, “we will be keen to analyze those fees and research,” he said, confirming that the department’s current tendency is to study government fees in the context of this tax. The General Secretariat of the Executive Council of the Emirate of Dubai has the authority to gradually reduce it in accordance with the new reality.
The Department of Finance initiatives include a review of all fees collected by government agencies in order to fulfill the emirate’s ambitions for long-term growth in government revenues and align them with best practices worldwide.
The program’s goals are to help the emirate’s economy and business climate thrive, to achieve revenue sustainability, and to kick-start the emirate’s financial policy.
Efforts are being made to build policies that are considered one of the most beneficial and attractive policies for foreign investments and to promote sectors, particularly small and medium-sized businesses.
The Dubai administration has reaffirmed that the “corporate tax benefits” now granted to enterprises formed in free zones that comply with all legal requirements and do not undertake commercial activities in the main area of the United Arab Emirates will continue to be offered.