Ras Al Khaimah: Domestic Corporate Taxes

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- Ras Al Khaimah Customs Duties

Except for oil and gas-producing companies and branches of foreign banks in Abu Dhabi, Dubai and Sharjah, there are no direct corporate income taxes in the UAE (including Ras Al Khaimah), nor are there any withholding taxes, sales taxes (for now) or wealth taxes.

The introduction of a value-added tax system in the United Arab Emirates (UAE) looks set to go ahead but later than planned. The UAE has been studying the possible introduction of VAT for some time, and a recent report by Dubai Customs suggested that the levy could have been introduced as early as 2009. However, it is becoming more apparent that the GCC member states want to roll out VAT simultaneously to replace revenues derived from trade taxes, which are due to be phased out as a number of free trade agreements signed by the GCC, including one with the EU, become effective.

One expert advising the UAE government told a tax conference in April 2010 that the countries of the GCC could have a regional value-added tax (VAT) in place as early as 2012, although this target date is looking increasingly unlikely to be achieved with some member states making faster progress than others in preparing for the tax.

Ras Al Khaimah Customs Duties

Imports into Ras Al Khaimah can only be undertaken by those importers who have the appropriate trade licence. Import duties have been largely standardised at 4%, but there are many exemptions, including food, building materials, medical products and any item destined for the three free zones.

By law 70 goods have been exempted from, including medicines, agricultural machinery, pesticides, fertilizers, periodicals, wood, unstrung pearls, un-worked silver and gold, iron and steel for use in construction, and raw or partially worked materials for use by local manufacturers. Goods produced within the GCC are also exempt from duties as are goods destined for the Ras Al Khaimah Free Zone.

Cigarettes are the exception to the general rule with the federal government approving a 100% tax. A 50% tax is levied on alcohol.

On January 1, 2003, the unified customs area of the Gulf Co-operation Council came into effect, covering Kuwait, Qatar, Oman, Saudi Arabia, Bahrain, and the United Arab Emirates (including Ras Al Khaimah).

Goods manufactured in the UAE that have a minimum of 40% of value added in the country qualify for a UAE country of origin certificate and can be exported to other GCC member states free of customs duty.

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