CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. IMF Urges UAE To Raise Non-Hydrocarbon Revenues

IMF Urges UAE To Raise Non-Hydrocarbon Revenues

by Lorys Charalambous, Tax-News.com, Cyprus

06 August 2015


The International Monetary Fund (IMF) has encouraged the United Arab Emirates (UAE) to raise more non-hydrocarbon revenues through new tax measures.

In its 2015 Article IV consultation report for the UAE, the IMF said the Government should diversify revenue sources by introducing a value-added tax (VAT), in coordination with the Gulf Cooperation Council (GCC) countries, and broadening corporate income and excise taxes.

The Fund estimates that applying corporate income tax to all companies at a rate of 10 percent would raise revenue by 4.1 percent of non-hydrocarbon gross domestic product (GDP). Meanwhile, introducing a five percent VAT and a 15 percent excise tax on automobiles would raise revenue by 2.7 percent and 0.6 percent of non-hydrocarbon GDP, respectively.

The authorities indicated that discussions are ongoing in the GCC to introduce a VAT, but the timeline is unclear. As regards income tax reforms, the authorities noted that an impact study would be needed before any broadening of the corporate income tax.

TAGS: United Arab Emirates | tax | economics | value added tax (VAT) | fiscal policy | revenue guidance | gross domestic product (GDP) | International Monetary Fund (IMF) | corporation tax | oil and gas | excise duty | tax reform | Gulf Cooperation Council

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »