Dubai authorities have imposed a 20% tax on all foreign banks operating in the emirate. The advisory law was issued by Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai and Prime Minister of the UAE, the Dubai government’s press service reported. TASS.
The law will apply to all foreign banks, including those registered in Dubai free zones. Banks licensed to operate in the Dubai International Financial Center are exempt from this obligation.
If a foreign bank is subject to 9% corporate tax, this amount will be deducted from the total tax liability. The government emphasized that the federal corporate income tax and the tax on the activities of foreign banks cannot be summarized.
The penalty for the first violation includes a fine of up to 500 thousand dirhams ($136.13 thousand). If the violation is repeated within two years, compensation of up to 1 million dirhams (272.26 thousand dollars) will be paid.
Previously Bloomberg WroteHe said visa reforms had increased demand for offices in Dubai.