UAE’s First Formal Tax Regime Announced | Perspectives & Events

Authors

ALERT LEVEL	RED
JURISDICTION / DATE	United Arab Emirates (UAE) / August 10, 2017
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.
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.
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.

RED	High importance—stop and address
ORANGE	Medium importance—initiate rapid response
YELLOW	Mild importance—initiate preventative response
BLUE	Low importance—take into account, fold into processes
GREEN	No response required, informational

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