- June 4, 2020
- Posted by: VatMan
- Category: Press Room
Article published by and copyright of ArabianBusiness.com
Move ‘unavoidable’ but will benefit SMEs, which currently suffer from high government fees
Corporate tax will ultimately be introduced in the UAE and GCC to replace the current high government fee system, with Covid-19 expected to accelerate the process, according to top Emirati lawyer Habib Al Mulla.
Speaking to Arabian Business, the chairman of Baker McKenzie Habib Al Mulla said the tax is “unavoidable” as regional governments look to diversify their main revenue stream away from oil and into a more steady source of income.
“This is a common issue for the Gulf countries because they have similar economic structures and face similar economic challenges. From a Gulf perspective, it’s a step we have to take. It’s unavoidable. The governments need to diversity their sources of income to something which will be steady and not as reliant on one commodity.