Authorities in the United Arab Emirates have made progress toward setting up a federal tax system to bolster government revenue.
The Ministry of Finance said it has completed a corporate tax law draft, according to its 2014 report sent by e-mail on Thursday. The U.A.E. Cabinet has approved the ministry’s tax policy, it said.
The U.A.E., a federation of seven emirates, doesn’t impose personal income tax or measures such as value added taxes. The OPEC member, home to the Middle East’s finance and trade hub in Dubai, is seeking to reduce the economy’s reliance on oil.
The ministry said its plan aims to create a department to “collect and implement federal taxes.” “This will in turn enhance the sustainability of the federal government’s resources,” it said, adding that the evaluation of its tax initiative is almost complete.