Abu Dhabi:
Abu Dhabi will slash the price of establishing new companies by “more than 90 percent” from Tuesday to raise the “competitiveness regionally and internationally” of the emirate, currently a magnet for commerce.
In current weeks, authorities have ramped up efforts to woo new company to Abu Dhabi, one of seven emirates that make up the United Arab Emirates.
Corporate taxes are virtually zero in the UAE as it seeks to diversify its previously oil-based economy.
“Business setup fees in Abu Dhabi emirate have been reduced to AED1,000 ($272) — a reduction of more than 90 per cent,” the Abu Dhabi Government Media Office stated in a statement late Sunday.
The new tariff will see the scrapping of some charges that had been previously payable to various public bodies and the reduction of other individuals, and will come into force from Tuesday July 27, it added.
“The move will significantly enhance ease of doing business in the emirate and increase Abu Dhabi’s competitiveness regionally and internationally,” the statement stated.
According to the Organisation for Economic Co-operation and Development, the United Arab Emirates is amongst “jurisdictions with no or insignificant taxes”.
However, the UAE on Monday welcomed the historic deal to overhaul the way multinational providers are taxed, saying it supports the international consensus to combat tax avoidance and profit shifting.
More than 130 nations have currently agreed to reforms on international taxation, such as a minimum corporate price of 15 %.
“The UAE is fully committed to working collaboratively with the OECD and (inclusive framework) members to further advance the technical discussions to ensure a fair and sustainable outcome can be achieved,” stated the assistant beneath-secretary at the finance ministry, Saeed Rashid al-Yateem, according to a statement carried by the official WAM news agency.
The UAE has not too long ago launched a swathe of financial reforms.
Since June 1, foreigners have been capable to build companies and retain manage of all of the capital, after only feasible in unique free of charge zones, compared to a maximum of 49 % outdoors these zones previously.
Abu Dhabi and Dubai, one of the other seven emirates, have traditionally competed to host the regional offices of international companies, attracting thousands of firms.
In June, the Dubai government announced a series of reforms, due to be enacted by mid-September, aimed at lowering the price of undertaking company and stimulating financial development.
In current months, Saudi Arabia, the Arab world’s biggest economy, has emerged as a competitor to the Emirates’ pulling energy as it seeks to break its personal dependence on oil.
With a brand new company district in the capital Riyadh, Saudi Arabia issued an ultimatum to foreign companies in February that they need to find their regional headquarters there by 2024 or danger missing out on profitable government contracts.
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