On March 12, Financial Times reported that Italy blocked the\ninclusion of United Arab Emirates on a European Union blacklist of alleged tax\nhavens. The UAE was criticized for not meeting a December 2018 deadline for\nbeing compliant with tax transparency standards.<\/p>\n\n\n\n
If added to the list, UAE will have to face restrictions in\naccessing European Union funding programmes, while the companies from European\nUnion, that operate in the UAE will have to compliance and anti-abuse measures.<\/p>\n\n\n\n
The government of Italy wants the UAE to be grey-listed\nbecause UAE has agreed to work on the deficiencies. Italy was of the stance\nthat the legislative process in the UAE that seeks compliance is a lengthy and\ntime-consuming process because of which UAE could not meet the standards in\nDecember.<\/p>\n\n\n\n
However, the EU added UAE to the blacklist in March 2019.\nAuthorities in the UAE responded that the Emirates were committed to all\ninternational tax agreements and that they were working with the EU to obtain\ncompliance of the standards.<\/p>\n\n\n\n
The government of the UAE will work with the EU to get its\nname removed from the blacklist.<\/p>\n\n\n\n
The issues at hand \n<\/strong><\/p>\n\n\n\n The government in the UAE has provided with people with a\nvariety of business opportunities in UAE to take advantage of and for investors\nto bring as much money to the UAE as they want. The business opportunities in\nUAE in the UAE have always been promising, however with the amount of investment\nand business coming in with the ease that the government has provided it was\nnot long before the UAE was thought of as a tax haven by people who wanted to\nevade tax.<\/p>\n\n\n\n The government has strict laws to govern every subject\nwhether it is business setup in UAE or it is working to achieve compliance of\ninternational standards related to taxation. Even though this might take time,\nthe UAE will eventually deal with the issue because such issues are obstacles\nin the Emirates\u2019 development and growth of business.<\/p>\n\n\n\n Such issues attract attention of the world which also means\nthat sanctions and barriers will be imposed by other countries on access to\nmarkets and financing from the EU, which affects every business setup in Dubai.\nThis is something that the UAE cannot take a risk with because the whole\ncountry revolves around business setup in UAE and trade. Any deterioration in\nrelation to business setup in Dubai will hamper the plans of the government for\nfurther development of UAE.<\/p>\n\n\n\n Taxation in the UAE<\/strong><\/p>\n\n\n\n Taxation is low in the UAE however changes are being brought\nby the government. One example is the implementation of value-added taxes. VAT\nin UAE was imposed in 2018 and there has been a lot of chatter about it.\nBusiness have had to adjust to VAT in UAE and the government provided a\ncomplete framework to make sure the process of including VAT in UAE\u2019s system\nwas smooth and flawless.<\/p>\n","protected":false},"excerpt":{"rendered":" On March 12, Financial Times reported that Italy blocked the inclusion of United Arab Emirates on a European Union blacklist of alleged tax havens. The UAE was criticized for not meeting a December 2018 deadline for being compliant with tax transparency standards. If added to the list, UAE will have to face restrictions in accessing European Union funding programmes, while the companies from European Union, that operate in the UAE will have to compliance and anti-abuse measures. The government of Italy wants the UAE to be grey-listed because UAE has agreed to work on the deficiencies. Italy was of the […]<\/p>\n