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UAE has no new tax increase planned for 2024

The OECD recently assessed the UAE's free zone corporate tax regime, declaring it "not harmful."

UAE has no new tax increase planned for 2024
[Source photo: Anvita Gupta/Fast Company Middle East]

The UAE has long been renowned for its zero-tax policies, attracting businesses and workers from across the globe. In 2023, however, the country embarked on a significant shift in its fiscal policy, levying a 9% corporate tax. This decision has been viewed as a strategic move to diversify the income sources while allowing it to maintain its status as a global commercial hub.  

Recently, Younis Haji Al Khouri, Undersecretary of the Ministry of Finance, reiterated the government’s commitment to tax stability at the World Government Summit in Dubai, saying the UAE will not introduce any new taxes or raise the current 5% value-added tax (VAT) in 2024, offering welcome news to residents and businesses alike. 

“We have declared several times that the government doesn’t have any plans to introduce personal income tax. Also, with VAT, there will be no changes,” Al Khouri said in an interview at the Summit. He further emphasized that no VAT changes are anticipated.

This assurance follows the UAE’s introduction of the corporate tax regime. Al Khouri clarified that no further adjustments to the corporate tax structure are planned for the current year.

The Organization for Economic Co-operation and Development (OECD) recently assessed the UAE’s free zone corporate tax regime, declaring it “not harmful.” 

Al Khouri emphasized the UAE’s commitment to maintaining “excellent relations with the OECD” and upholding “best practices in tax administration.”

The Innovation By Design Summit is in Doha on April 24. Attendance at the summit is by invitation only. Delegates can register here to receive their exclusive invite.

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