Taxation in the UAE
Historically, the UAE was known for its tax-free environment. However, to align with international standards and diversify government revenue, the country has introduced several tax measures in recent years:
Value-Added Tax (VAT): Introduced in 2018, VAT is levied at a standard rate of 5% on most goods and services. Businesses that exceed the mandatory threshold are required to register with the Federal Tax Authority (FTA).
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