Monday 10 December 2012

UPDATE 2-UAE telcos may face bigger tax bill under new formula | Reuters

The United Arab Emirates has set new tax, or royalty, rates for telecom operators in a move seen designed to protect state revenues after a sustained profit slump at No.1 operator Etisalat.

UAE telecom operators are taxed via royalties under license agreements with the government, and the total amount Etisalat will be paying could rise under the new formula, which includes a levy on its revenues as well as profits.

The former monopoly, which operates in 15 countries across the Middle East, Asia and Africa, previously paid 50 percent of its annual profit in royalties, but as its profits fell so too did government receipts.

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