No New Taxes & Fee Hikes for 2019 in UAE

No New Taxes & Fee Hikes for 2019 in UAE

The UAE has introduced a string of initiatives for the coming 2019 to boost up investor confidence and to attract global talents. It has firmly ruled out imposition of any new taxes for the next 5 years. Federal government fees will also not be increased for at least three years. The major announcement made by the UAE Cabinet will undeniably benefit businesses, individuals and of course, the overall economy. In simple words, it is intended to attract more foreign investment that will support the industrial and commercial sectors and will eventually promote economic and social stability.

VAT in 2019

With the beginning of VAT, value-added tax in 2018, the government anticipated to earn Dh12 billion revenue in 2018 and further Dh20 billion in 2019. The Ministry of Finance predicts that the country’s economy would prosper in 2019 and the nation is poised to perform better than it ever did in 2018. After a fruitful year 2018, the UAE government plans to spend more in the coming year. It will double the amount of loans that is extended to small and medium enterprises. It will also as boost housing support for Emirati citizens.


2019 New Initiatives to Attract Foreign Investors

The new decisions recently made by the government, related to entry visas, residence permits and business visas have received acclaim both within and outside the UAE. While the Cabinet recently announced new visa facilitations, it granted longer-term residencies for job seekers and non-residents. 10-year residence visa for investors and specialists was approved. It also granted a six-month visa for job seekers who stayed in the country for a longer period than the validity of their visas and wished to work therein. Moreover, a new insurance plan was introduced that aimed at foreign workers and made it easier for employers to engage in their activities and recruit talents.

Growth Projection for 2019

The 10-year visa for investors and professionals, as well as 100 per cent ownership in business will go a long way in attracting capital to the UAE. The Central Bank of the UAE has projected a year-on-year real GDP growth of 4.4 per cent in the fourth quarter 2018 supported by a 6.7 per cent growth in the oil sector. Growth projection for 2019 show that economic activity will improve due to expected higher oil prices, more oil production, and the effects of the announced fiscal stimulus packages, underpinned by the strong fundamentals. Real GDP is expected to grow by 4.2 per cent in 2019 as oil and non-oil sectors are projected to grow by 5.2 per cent and 3.7 per cent, respectively.

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