KPMG in UAE shares insights on Dubai’s 2019 fiscal budget, as well as other key developments in the UAE.
Dubai’s 2019 fiscal budget
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, recently signed the Dubai Public Budget Law for 2019.
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New UAE tax treaties
Saudi Arabian cabinet approves UAE-Saudi Arabia Double Tax Treaty
On 6 February 2019 the Saudi Arabian Cabinet approved an agreement between the governments of the Kingdom of Saudi Arabia and the United Arab Emirates. The aim is to avoid double taxation in respect to income and capital, and to prevent tax evasion.
KPMG will be issuing a detailed alert as soon as the text has been made available in the official gazette
UAE continues to expand its already wide DTT network. There are now 122 signed DTTs, of which 89 are in force. New DTTs signed by UAE by December 2018:
Foreign Direct Investment Law in the UAE
A new FDI law, allowing foreigners to own more than 49% of a mainland legal entity, was issued in October 2018. Eventually, an FDI Unit will be established in the Ministry of Economy. While the details are yet to be made public, an FDI Committee will be established in the interim, in order to review and recommend a list of sectors to open to foreign investors.
Under the FDI law, foreign investment may be permitted in sectors of the economy which do not appear in a ‘negative list.’ The list includes, among other sectors, banking and finance, insurance, land and air transport and medical retail services. Sectors may be added to or removed from the list by the UAE Cabinet.