Abu Dhabi will slash the cost of establishing new businesses by “more than 90 percent” from Tuesday to increase the emirate’s regional and international competitiveness.
Authorities have been ramping up efforts to attract new businesses to the United Arab Emirates with corporate taxes being considerably reduced in the country.
“Business setup fees in Abu Dhabi emirate have been reduced to AED1,000 ($272) -- a reduction of more than 90 percent,” the Abu Dhabi Government Media Office said in a statement late Sunday.
The new tariff will see the scrapping of some fees that were previously payable to different public bodies and the reduction of others, and will come into force from Tuesday, it added.
“The move will significantly enhance ease of doing business in the emirate and increase Abu Dhabi's competitiveness regionally and internationally,” the statement said.
“Our goal for Abu Dhabi is to create a thriving business environment that encourages growth and innovation,” said Mohammed Al Shorafa, Chairman of the Abu Dhabi Department of Economic Development (ADDED).
A total of 132 countries have already agreed to reforms on international taxation, including a minimum corporate rate of 15 percent.
“The UAE is fully committed to working collaboratively with the Organization for Economic Cooperation and Development (OECD) and (inclusive framework) members to further advance the technical discussions to ensure a fair and sustainable outcome can be achieved,” said assistant under-secretary at the finance ministry, Saeed Rashid al-Yateem, according to a statement carried by the official WAM news agency.
Since June 1, foreigners have been able to create businesses and retain control of all of the capital, once only possible in special free zones, compared to a maximum of 49 percent outside those zones previously.
In June, the Dubai government announced a series of reforms, due to be enacted by mid-September, aimed at reducing the cost of doing business and stimulating economic growth.