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.
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 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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