DUBAI, UNITED ARAB EMIRATES Ð July 15: Dirham is the currency of the United Arab Emirates. UAE dirham was introduced in 1973. (Pawan Singh / The National) *** Local Caption ***  PS06- DIRHAMS.jpg
The UAE dirham is pegged to the US dollar. The National

UAE tax laws by September, may increase consumer prices by 1.4%



The UAE expects to publish laws on value added tax (VAT) as well as an excise tariff by the end of the current quarter, levies that may increase overall consumer prices by an average one-off hike of 1.4 per cent, a senior official said on Tuesday.

The UAE will implement a 5 per cent GCC-wide VAT on January 1, 2018 and excise tariff by the fourth quarter, Khalid Al Bustani, the director general of the country's Federal Tax Authority said in a press briefing on Tuesday.

In June Saudi Arabia introduced excise taxes, the first Gulf country to do so. The country also published a draft VAT law that was approved by its Shura Council in July, paving the way for legislation being implemented on January 1 next year.

Both the UAE and Saudi Arabia are implementing a 100 per cent excise tax on tobacco products and energy drinks, and a 50 per cent tax on carbonated drinks.

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Read our essential tax guide here: Tax in the UAE: Everything you need to know about VAT and a little bit more

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Other GCC states have until the end of 2018 to introduce the taxes, said Mr Al Bustani.

Gulf states are introducing consumption taxes for the first time to create new revenue streams after a three year oil slump dented income and widened deficits.

The implementation of the GCC-wide tax is expected to boost GDP by about 1.5 per cent with the implementation of the 5 per cent VAT, the International Monetary Fund has said.

In the UAE, VAT could generate Dh12 billion in its first year and Dh20bn in its second year, according to Sultan Al Mansouri, the Minister of Economy.

Mr Al Bustani said the authority expects to register an estimated 350,000 companies subject to VAT by the end of the year, with 250 expected to register for excise tax. Businesses would be able to register online for VAT and excise tax starting mid-September.

"We have a plan for the registration of the companies for the VAT and excise taxes through a phased approach and the approach will be based on the size of the turnover of the company, which will be announced at a later stage," said Mr Al Bustani.

"And the first stage will involve the registration of companies related to the excise tax."

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Read more:

VAT is coming to the UAE, time to study up

New tax law will help regulate informal economy

President Sheikh Khalifa appoints Director-General of Federal Tax Authority

Sheikh Khalifa issues landmark tax law for UAE

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Companies with annual turnover of Dh375,000 and above must register for VAT, or they will face penalties if they fail to do so.

Residential property in the UAE, some financial services, undeveloped land, local transport and most insurance will be exempt from VAT.

The UAE last month issued the Tax Procedures Law, setting the foundations for the planned UAE tax system, regulating the administration and collection of taxes and defining the role of the Federal Tax Authority, and paving the way for more specific legislation on VAT and excise tax.

Financial professionals in the UAE have warned that many businesses are ill-prepared for the VAT introduction, and will only begin taking the tax seriously after it comes into force in the new year.

EMIRATES'S REVISED A350 DEPLOYMENT SCHEDULE

Edinburgh: November 4 (unchanged)

Bahrain: November 15 (from September 15); second daily service from January 1

Kuwait: November 15 (from September 16)

Mumbai: January 1 (from October 27)

Ahmedabad: January 1 (from October 27)

Colombo: January 2 (from January 1)

Muscat: March 1 (from December 1)

Lyon: March 1 (from December 1)

Bologna: March 1 (from December 1)

Source: Emirates

Company info

Company name: Entrupy 

Co-founders: Vidyuth Srinivasan, co-founder/chief executive, Ashlesh Sharma, co-founder/chief technology officer, Lakshmi Subramanian, co-founder/chief scientist

Based: New York, New York

Sector/About: Entrupy is a hardware-enabled SaaS company whose mission is to protect businesses, borders and consumers from transactions involving counterfeit goods.  

Initial investment/Investors: Entrupy secured a $2.6m Series A funding round in 2017. The round was led by Tokyo-based Digital Garage and Daiwa Securities Group's jointly established venture arm, DG Lab Fund I Investment Limited Partnership, along with Zach Coelius. 

Total customers: Entrupy’s customers include hundreds of secondary resellers, marketplaces and other retail organisations around the world. They are also testing with shipping companies as well as customs agencies to stop fake items from reaching the market in the first place. 

Maestro

Director: Bradley Cooper

Starring: Bradley Cooper, Carey Mulligan, Maya Hawke

Rating: 3/5

The finalists

Player of the Century, 2001-2020: Cristiano Ronaldo (Juventus), Lionel Messi (Barcelona), Mohamed Salah (Liverpool), Ronaldinho

Coach of the Century, 2001-2020: Pep Guardiola (Manchester City), Jose Mourinho (Tottenham Hotspur), Zinedine Zidane (Real Madrid), Sir Alex Ferguson

Club of the Century, 2001-2020: Al Ahly (Egypt), Bayern Munich (Germany), Barcelona (Spain), Real Madrid (Spain)

Player of the Year: Cristiano Ronaldo, Lionel Messi, Robert Lewandowski (Bayern Munich)

Club of the Year: Bayern Munich, Liverpool, Real Madrid

Coach of the Year: Gian Piero Gasperini (Atalanta), Hans-Dieter Flick (Bayern Munich), Jurgen Klopp (Liverpool)

Agent of the Century, 2001-2020: Giovanni Branchini, Jorge Mendes, Mino Raiola

The specs: 2018 Nissan 370Z Nismo

The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
​​​​​​​Fuel consumption, combined: 10.5L / 100km

THE SPECS

Engine: 1.5-litre

Transmission: 6-speed automatic

Power: 110 horsepower

Torque: 147Nm

Price: From Dh59,700

On sale: now

COMPANY PROFILE

Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)

Company profile

Company name: Suraasa

Started: 2018

Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker

Based: India, UAE and the UK

Industry: EdTech

Initial investment: More than $200,000 in seed funding

MATCH INFO

Everton v Tottenham, Sunday, 8.30pm (UAE)

Match is live on BeIN Sports

The schedule

December 5 - 23: Shooting competition, Al Dhafra Shooting Club

December 9 - 24: Handicrafts competition, from 4pm until 10pm, Heritage Souq

December 11 - 20: Dates competition, from 4pm

December 12 - 20: Sour milk competition

December 13: Falcon beauty competition

December 14 and 20: Saluki races

December 15: Arabian horse races, from 4pm

December 16 - 19: Falconry competition

December 18: Camel milk competition, from 7.30 - 9.30 am

December 20 and 21: Sheep beauty competition, from 10am

December 22: The best herd of 30 camels


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