Dubai on Thursday issued a law mandating a 20 per cent annual tax on foreign banks operating within the Emirate.
The law which was approved by His Highness Sheikh Mohammes bin Rashid Al Makthoum, Vice President and Ruler of Dubai issued guidelines for determining taxable income and the protocols for filing tax returns, according to a statement by Dubai Media office.
However, exemptions will be made for those banks which are licensed to operate in Dubai’s international financial centre.
It will also regulate the procedures for auditing tax returns and voluntary disclosures, as well as the responsibilities and procedures associated with tax audit proceedings, the post said.
