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Home > On Approaching Orbis Tertius: Open Humanities Press > Reader Comments > Overview of the law and tax

Overview of the law and tax

Labor Law Rahman Ali (2022-11-24)

The UAE, like the great majority of countries around the world, imposed taxes on everyday commodities and services. This adjustment was implemented on January 1, 2018, in order to diversify income streams. Because Saudi and UAE significantly rely on oil, the Value Added Tax is in place to wean the country off of its reliance. Saudi Arabia withholding tax is a bit high than UAE.
According to the Federal Tax Authority’s website, the implementation of VAT and other taxes aims to raise revenue through several mechanisms. This is done to ensure that government departments can sustain the standards established and provide good amenities and life quality to future generations.
These programs are also in place as a means of rectifying habits that are harmful to society. One example is the imposition of excise charges on goods that are damaging to the wellness of UAE residents. Among these items are carbonated beverages, energy drinks, and cigarettes. With the introduction of VAT came the requirement for tax registration numbers and TRN verification.