UAE moving from a non-tax environment to a tax environment

02-02-2022 16:38:26

UAE Moving Non-Tax to a Tax Environment 

Mr.Rizwan Sajan- Chairman and Founder Danube Group said: “The UAE is moving gradually from a non-tax environment to a tax environment - that will give the UAE Government additional income to fund the country’s development activities. This comes about four years after the introduction of VAT, in January 2018. This might put the businesses into a difficult situation initially. This could have been introduced a few years later, as most small and medium enterprises are still struggling to survive. However, businesses will adjust to this eventually like the rest of the developed world.”

“The good thing is that the tax will be introduced on June 1, 2023 - that gives the businesses some time to prepare for this. Most SMEs in the UAE do not have the system to post audited financial results. So, they have to catch up a bit. The auditing firms will become busy suddenly. The government could put the tax ceiling at a much higher level, say Dh10 million upwards - to start with and then gradually increase the tax base. That would give the SMEs more time to recover and prepare for getting into the tax environment.”


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