IMF recommends not just VAT, but also tax on cars, all companies | GulfNews.com

IMF recommends not just VAT, but also tax on cars, all companies | GulfNews.com:



"The UAE government could diversify its revenues and strengthen its fiscal position by implementing not just a value-added tax (VAT) system, but also a special excise on cars and corporate income tax on all companies.



In an August 2015 report, the International Monetary Fund (IMF) said the UAE could generate extra revenues worth as much as 4.1 per cent of the non-hydrocarbon domestic product (GDP) by introducing a 15 per cent ad valorem tax on passenger vehicles and broadening the coverage of its corporate income tax scheme, aside from collecting a five per cent VAT.



The UAE has been known for its tax-free regime. There is no personal income tax or value-added charges collected from residents in the country, making it an ideal place for working expatriates seeking to grow their income."



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