Weekly Spotlight – May 29, 2017
This week the spotlight is on tax developments in the GCC, where following its ratification by the UAE and in line with the procedural requirements, the Gulf Cooperation Council (GCC) countries’ agreement on VAT and selective taxes is now in force. The General Secretariat of the GCC has received the UAE's ratification documents for the two agreements. The two agreements come into effect when the second GCC country submits its ratification documents to the secretariat.
Elsewhere, following its first meeting, the UAE’s Federal Tax Authority has announced a 100% selective tax on tobacco and energy drinks and a 50% tax on soft drinks will be introduced by December 2017. The Finance Minister, Sheikh Hamdan Bin Rashid Al Maktoum has also said the Tax Procedures Law will be issued and published soon. Meanwhile, the VAT Law is currently being debated by the technical legislative committee and will then be submitted to the Cabinet. The Selective Tax Law will then be discussed by the committee.