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ALERT LEVEL |
RED |
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JURISDICTION / DATE |
United Arab Emirates (UAE) / August 10, 2017 |
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SUBJECT |
On July 31, 2017, the president of the UAE issued Federal Law No.7 of 2017, the new Tax Procedures Law (TPL). The TPL, the UAE’s first formal tax regime, regulates tax payments and taxpayer rights and obligations. It also designates the Federal Tax Authority as the main government tax agency. |
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IMPACT TO BUSINESS |
The TPL, announced before a highly anticipated GCC-wide VAT regime (effective January 1, 2018), imposes substantial new tax obligations on businesses operating in the UAE. Businesses operating in the UAE must comply with the TPL’s requirements by August 30, 2017. |
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NEXT STEPS |
Companies in the UAE must comply with the TPL’s VAT registration obligations as soon as possible in addition to ensuring that all accounting records and commercial books are in order. |
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RED |
High importance—stop and address |
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ORANGE |
Medium importance—initiate rapid response |
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YELLOW |
Mild importance—initiate preventative response |
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BLUE |
Low importance—take into account, fold into processes |
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GREEN |
No response required, informational |