Abstract
The United Arab Emirates (UAE) is a federal State formed in 1971. Since its establishment, federal taxes have not been adopted nor has a Federal Tax Authority been set-up which have led to little attention being paid to the UAE federal tax system. The perception is steadily changing due to the increasing importance of compliance with international standards, on the one side, and the introduction of a ‘federal’ VAT, on the other. In this article, the author discusses the UAE Constitutional principles that directly and indirectly affect taxation. An hystorical analysis helps to outline the context in which the UAE federalism arose (mainly since 1968) and how it later developed after the establishment of the UAE. The spheres of the Union and the Emirates are strictly interdependent, and the distribution of taxing powers and cooperation between the two levels of government is based on a residual competence of the Emirates (with regard to all matters not assigned to the Union). However, the distribution of taxing powers in the UAE reveals that its tax system is a phenomenon ‘in evolution’, driven by social and economic changes that are gradually shaping the unique UAE federal tax system. Against this background, this system, as it was addressed until 2016, currently displays different features and deserves careful attention by scholars, practitioners, and policymakers who are concerned with UAE tax-related issues.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.