Dubai's Department of Finance reinforces efforts to further enhance emirate's business environment

(MENAFN- Emirates News Agency (WAM))

DUBAI, 1st February, 2022 (WAM) -- The government of Dubai's Department of Finance (DOF) said that, under the directives of H.H. sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, crown prince of Dubai and Chairman of Dubai Executive Council, the Department is reinforcing its efforts to further enhance the supportive, growth-friendly business environment for companies registered and operating in the emirate, especially small and medium enterprises (SMEs).

The Department's efforts, which are aligned with the framework of financial federal laws, are aimed at enabling businesses to achieve greater success, it said.

The Department of Finance noted that corporate taxes are systematically applied in many countries around the world in ways that serve government interests and take into account the interests of companies in the long run. The federal tax announced by the UAE Ministry of Finance on Monday, which will be at a low rate of nine percent, is considered competitive and reflects best practices, the Department said. It is among the lowest in the world and the lowest in the region.

Abdulrahman Saleh Al Saleh, Director-General of DOF, revealed a government programme at DOF to study all current and emergent variables related to the companies working in Dubai.

'Under the directives of our wise leadership, and within the framework of the Public Revenue Structuring Programme, DOF is reviewing the business fees contributing, along with other sources of public revenues, to the financing of government projects. The new reality requires us to study and review the government fees system, in order to facilitate businesses and entrepreneurial projects,' Al Saleh said.

'The fees imposed by the Government of Dubai on commercial activities are affordable in the absence of corporate tax. Following the introduction of this tax, however, we will be keen, under the supervision of the General Secretariat of The Executive Council, to study those fees and look into the possibility of gradually reducing them in line with emergent trends,' Al Saleh added.

DOF's Public Revenue Structuring Programme includes a comprehensive study of fees collected by all government entities within the framework of the government general budget, in order to serve the emirate's aspirations to achieve sustainable development of government revenues and align them with the global best practices. The programme works to achieve revenue sustainability, and activate the fiscal policy of the emirate by supporting economic growth and the business environment.

Moreover, work continues, in cooperation with concerned authorities, to develop policies that are considered some of the best supportive and attractive policies for foreign investments that are stimulating sectors, especially SME's.

In support of free zone-based businesses, the Government of Dubai confirms the continuation of current corporate tax incentives offered to companies established in the emirate's free zones that comply with all regulatory requirements and do not conduct commercial activities in the UAE's mainland.

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