Dubai Keeps Taxes Low In 2015 Budget
by Lorys Charalambous, Lowtax.net, Cyprus
15 January, 2015
Dubai has confirmed that it will post a surplus next year without changes to its tax regime, with the Budget for 2015 newly being approved by the Ruler of Dubai, Mohammed bin Rashid Al Maktoum.
There is almost a complete absence of taxes for both corporations and individuals in Dubai. Banks and oil companies pay tax at rates as high as 55 percent and 20 percent, respectively, however, and a tax on business property, based on rental values, is set at ten percent.
The Government is planning to invest heavily in the emirate's growth, with expenditure levels not seen since the financial crisis. Revenue – mainly from Government fees – is predicted to grow 11 percent this fiscal year. Tax revenues are expected to rise 12 percent and account for 21 percent of total government revenues.
"The Government's success in achieving no-deficit balance for the first time since the global financial crisis is a result of applying prudent fiscal policies," said Arif Abdulrahman Ahli, Executive Director of Budget and Planning in the Department of Finance.
"The 2015 balance has been prepared in accordance with rule of using recurrent revenues to finance recurrent expenditures, which is one of the sound scientific bases of fiscal policy," Ahli said. "The operating surplus of AED3.6bn (USD980m) will contribute to the financial sustainability of the principality."
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