Sharjah's Ruler Sheikh Dr Sultan bin Muhammad Al Qasimi approved the emirate's Dh32.2 billion ($8.76 billion) budget for 2023 that prioritises spending on infrastructure, capital projects and economic development.
Spending, 12 per cent lower than in last year's budget, is aimed at achieving financial sustainability and improving the emirate's economic competitiveness, the Sharjah Finance Department said in a statement on Monday.
“The general budget for the year 2023 is a budget with two dimensions, which are economic and social development and infrastructure, and a strategic dimension, represented in developing and strengthening the financial sustainability of the government,” Sheikh Mohammed bin Saud Al Qasimi, chairman of Sharjah Finance Department, said.
Sharjah has been experiencing strong growth after its government took several measures to support businesses and residents to mitigate the effects of the Covid-19 pandemic. The emirate introduced Dh1 billion of economic stimulus measures in 2020 in response to the economic challenges caused by the global crisis, which included the waiving, reduction or cancellation of certain government fees and charges.
The 2023 budget aims to achieve financial sustainability and enhance the emirate’s economic competitiveness.
About 35 per cent of the budget will be allocated to infrastructure and capital projects, 34 per cent to economic development, 28 per cent to salaries and 23 per cent to social development.
Spending on social support will constitute 13 per cent of the budget, up 5 per cent on last year's allocation, as part of welfare and social justice efforts.
Operating expenses will represent 30 per cent of the 2023 budget, a decrease of 4 per cent from last year, the finance department said.
Loan repayments and interest accounted for 13 per cent of the total budget this year, underscoring the government's ability and financial solvency to pay all its obligations, it said.
Spending was rationalised in areas that do not add value to the emirate's competitiveness and financial sustainability, so the 12 per cent year-on-year decrease in expenditure for 2023 does not impact key areas such as employment or economic and social development, said Waleed Al Sayegh, director general of the Sharjah Finance Department.
In terms of government revenue, operational revenue represents 69 per cent of the total budget for 2023, an increase of 11 per cent from last year's levels.
Capital revenue constitutes 11 per cent of next year's budget.
Tax revenue represents about 10 per cent of total public revenue in 2023, with an increase of about 48 per cent year-on-year.
Customs revenue accounted for 4 per cent, an increase of about 4 per cent from last year.
Oil and gas revenue constituted about 6 per cent of the total revenue budget for 2023, a jump of 96 per cent compared to last year.
The budget is targeted at strengthening the financial foundations to boost government capabilities in the face of global challenges including high inflation, rising interest rates and weaker economic growth worldwide, the finance department said.
The Sharjah government, through the general budget, has taken into account these challenges, Mr Al Sayegh said.
It is working on providing social support, job opportunities and adequate housing for families, he added.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
57%20Seconds
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Rusty%20Cundieff%0D%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EJosh%20Hutcherson%2C%20Morgan%20Freeman%2C%20Greg%20Germann%2C%20Lovie%20Simone%0D%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2%2F5%0D%3Cbr%3E%0D%3Cbr%3E%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
Company%20profile
%3Cp%3EName%3A%20Tabby%3Cbr%3EFounded%3A%20August%202019%3B%20platform%20went%20live%20in%20February%202020%3Cbr%3EFounder%2FCEO%3A%20Hosam%20Arab%2C%20co-founder%3A%20Daniil%20Barkalov%3Cbr%3EBased%3A%20Dubai%2C%20UAE%3Cbr%3ESector%3A%20Payments%3Cbr%3ESize%3A%2040-50%20employees%3Cbr%3EStage%3A%20Series%20A%3Cbr%3EInvestors%3A%20Arbor%20Ventures%2C%20Mubadala%20Capital%2C%20Wamda%20Capital%2C%20STV%2C%20Raed%20Ventures%2C%20Global%20Founders%20Capital%2C%20JIMCO%2C%20Global%20Ventures%2C%20Venture%20Souq%2C%20Outliers%20VC%2C%20MSA%20Capital%2C%20HOF%20and%20AB%20Accelerator.%3Cbr%3E%3C%2Fp%3E%0A
Book%20Details
%3Cp%3E%3Cem%3EThree%20Centuries%20of%20Travel%20Writing%20by%20Muslim%20Women%3C%2Fem%3E%3Cbr%3E%3Cstrong%3EEditors%3A%20%3C%2Fstrong%3ESiobhan%20Lambert-Hurley%2C%20Daniel%20Majchrowicz%2C%20Sunil%20Sharma%3Cbr%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3EIndiana%20University%20Press%3B%20532%20pages%3Cbr%3E%3C%2Fp%3E%0A
Company: Instabug
Founded: 2013
Based: Egypt, Cairo
Sector: IT
Employees: 100
Stage: Series A
Investors: Flat6Labs, Accel, Y Combinator and angel investors
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
