Why Dubai is now having Corporate Tax.
So, when people first think of Dubai, they get in mind about the Burj Khalifa, the Burj Al Arab the Supercars & the Rich Life. Where does the money come from to afford all of this? Some may think of the oil but not anymore for Dubai at least since a large portion of oil comes from it’s neighbor Abu Dhabi. But, let’s find out
Reason 1: The Lack of Resources
Dubai is pretty small compared to it’s neighbor Abu Dhabi, & with most of the UAE’s Population being situated in the Dubai Emirate, there is not much space to start mining, oil drilling or Fracking then, what will they mine?, since most of the resources are nearly being finished off, the region only has a small amount of Oil & Gas Reserves. The Gas reserves are mainly reserved to power the city & for cooking of food & the Oil is being used for Aviation, Maritime & the 2.5 Million+ Road Vehicles.
There was plenty of oil in the region but with the sharp rise in population & land being used up for civilization, the oil eventually gave up & the prices have been increasing ever since.
Reason 2: The little decline in Tourism
Since the Covid-19 Pandemic has emerged, the tourism industry has had a deep dive into losses. With 11.5% of the economy is linked with this industry, the Economy is still trying to recover from this even though the tourism has resurfaced.
Reason 3: (According to the Government) To meet International Standards
Most of the Gulf in it’s history has had 0% tax in everything, they didn’t have a valid reason to increase tax. They just want to become the same as the other’s.
The Tax will start from 2023 unless a better alternative comes. Meanwhile, the Personal Income Tax is still at 0% with no future rise plans. Phew…
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