UAE Toying with Taxes as a New Source of Income

Analysis

UAE considering taking steps to raise income from wealthy residents accustomed to tax-free living

The move is being considered in the wake of Dubai's recent financial turbulence.

However any move will be offset against the Emirate's mindfulness of their reputation as a low-tax centre and eagerness not to drive out expatriates. This means that any moves will be focused on raising indirect taxes and resisting directly taxing its residents for the time being.

The country is well aware that the introduction of more obvious tax measures - corporate and personal income taxes, value-added tax (VAT) or a property tax - would drive expatriates and their businesses out.

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