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UAE: Tax relief included in responses to coronavirus (COVID-19) in Dubai and Abu Dhabi

UAE: Tax relief included in responses to coronavirus

Dubai and Abu Dhabi of the United Arab Emirates announced measures, including tax relief, to address the effects of the coronavirus (COVID-19) outbreak.

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Dubai

The Dubai government on 12 March 2020 announced an economic stimulus package to enhance liquidity in response to the COVID-19 outbreak. Included in the package are the following measures:

  • A refund of 20% of the customs fee imposed on imported products sold in Dubai
  • A 90% reduction of fees imposed on submission of customs documents
  • A “freeze” on the 2.5% market fees levied on all facilities operating in Dubai
  • Reduction of “municipality fees” imposed on sales at hotels from 7% to 3.5%
  • A freeze on “fees” charged for the sale of tickets, issuance of permits and other government fees related to entertainment and business events
  • A reduction in water and electricity bills by 10% and a reduction in deposits paid for water and electricity connections by 10%
  • Changes to bank guarantees or cash requirement rules

Abu Dhabi

Abu Dhabi has also announced initiatives focused on supporting small and medium-size enterprises (SMEs) and easing the availability of loans to local companies and include:

  • Suspension of real estate registration fees until the end of 2020
  • Reduction of industrial land leasing fees by 25% on new contracts
  • Suspension of tourism and municipality fees for the tourism and entertainment sectors until the end of this year
  • Exemption for commercial vehicles from annual registration fees until the end of this year
  • Exemption for all vehicles from road toll tariffs until the end of this year


Read a March 2020 report prepared by the KPMG member firm in the United Arab Emirates

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