Corporate tax will ultimately be introduced in the both the UAE and GCC to replace the current high government fee system and Covid-19 is expected to accelerate the process, according to Habib Al Mulla, an Emirati Lawyer.
“This is a common issue for the Gulf countries because they have similar economic structures and face similar economic challenges. From a Gulf perspective, it’s a step we have to take. It’s unavoidable. The governments need to diversity their sources of income to something which will be steady and not as reliant on one commodity.”
“It is going to happen. If it doesn’t happen now, it’s going to happen at a later stage. Tax is a part of reality. It’s like death – it’s a part of life, whether we like it or not. We cannot say that we will continue living without taxes, unless you’re a tax haven, an island somewhere without much interaction with the global economy. That’s a different story but that’s not what we are.
Whilst Al Mulla has a strong opinion on this matter, he concluded by saying that it will take at least a year before the Emirates make the move.
