Ras Al Khaimah: Domestic Taxation
Except for oil and gas-producing companies and branches of foreign banks in Abu Dhabi, Dubai and Sharjah, there are no direct corporate income taxes in the UAE (including Ras Al Khaimah), nor are there any withholding taxes, sales taxes (for now) or wealth taxes.
The introduction of a value-added tax system in the United Arab Emirates (UAE) looks set to go ahead but later than planned. The UAE has been studying the possible introduction of VAT for some time, and a recent report by Dubai Customs suggested that the levy could have been introduced as early as 2009. However, it is becoming more apparent that the GCC member states want to roll out VAT simultaneously to replace revenues derived from trade taxes, which are due to be phased out as a number of free trade agreements signed by the GCC, including one with the EU, become effective.
One expert advising the UAE government told a tax conference in April 2010 that the countries of the GCC could have a regional value-added tax (VAT) in place as early as 2012, although this target date came and went. According to latest reports, it is the GCC is now looking to introduce VAT perhaps in 2014.