Multiple measures have been taken by the government of UAE to impede the
impact of corona virus in health and economic altogether. The UAE Federal
Government has declared certain nationwide improvement or preventive measures,
notwithstanding measures taken by the individual Emirates of Abu Dhabi and Dubai
to help their particular Emirates. For instance, the government has issued
Cabinet Resolution 17 of the year 2020 obliging all individuals and companies to
adhere with the preventive and health measures issued by the regulatory
authorities for combatting COVID-19.
Importantly, anyone failing to comply with such provisions shall be exposed to
all criminal penalties which may include imprisonment or fine which will be
decided by the Attorney General of the country. Commercial Lawyers of Dubai have
been witnessing the grants and relaxation issued by the government for the
companies and small scale industry to curb the severe impact of corona virus on
TAX relation for companies
In furtherance, the present article discuss about the grants issued by the
government with regards to the taxation or custom duties imposed. UAE do not
impose corporate or income tax on the individuals or the companies, however,
very recently indirect taxes were imposed on all residents of UAE be it a
natural or a legal person. Wherein, VAT (Value Added Tax) is one of the indirect
tax and other custom duties and the government of Dubai has issued a regulation
for refund of 20% custom duty on imports of goods sold within the country.
Furthermore, the government has removed the obligation of submitting bank
guarantees for clearing goods for customs brokers and has ordered for refunding
the prevailing bank guarantees for such companies.
Apart from Dubai, the government of Sharjah has exempted shipping clearance
companies to submit bank guarantees for conducting their activities as of 01
April 2020. The Federal Tax Authority has reported a one month expansion to the
assessment time frame for Excise charge purposes.
The period beginning 1 March 2020 has been stretched out to 30 April 2020
(covering both March and April 2020) to permit enrolled organizations extra an
ideal opportunity to satisfy their assessment commitments before the
all-encompassing cutoff time. Moreover, the Federal Tax Authority has offered
one month extension for submitting tax return monthly or quarterly.
In addition, UAE government do not impose any other sorts of taxes on companies
or even on individuals. Apart from the taxation reliefs, the UAE central bank
has issued further benefits for small and medium sized enterprises such as loans
on zero interest rate, lower interest on real estate loans, and reduction in
bank fees for credit cards. In the Emirate of Dubai, residents are enjoying 50%
reduction in municipality fees paid by hotel industry, reduction in DEWA bills,
and reduction in other governmental charges.
It is apparent that the government of UAE have been fortunate in assisting the
small companies, investors, labors and other residents of UAE in terms of
issuing regulations which can somehow try to beat the drastic economic impact of