Abu Dhabi: 3% tax introduced on expat lease

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VeedushiTeam13 April 2016 07:55:59

1612

Hello everyone,

If you are renting or about to rent property in Abu Dhabi, pay attention to the latest tax measures.
From now on, expats renting property in Abu Dhabi will have to pay a 3% municipal tax according to their yearly lease. This new tax is similar to the 5% housing tax which is in force in Dubai. However, locals will be exempt from this newly introduced tax.

The municipal tax will be collected by the Abu Dhabi Water and Electricity Authority, unless otherwise is stipulated in the lease contract. It will then be used for Tawtheeq and registration costs for tenancy contracts.

On the other hand, a 4% will apply to hotel bills throughout the country. As at now, Abu Dhabi hotels apply a 6% municipal tax and a 10% service charge.

Note that these measures have been introduced so as to tackle the budget deficit linked to declining oil prices.

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drzaheer New member

Member since 03 July 2014

drzaheerNew member18 April 2016 06:17:55

the country claiming to be a tax free is now turning to be economically dependent on taxes,and main burden is being put on expats who are already paying very high house rent compared to any other country in the region,Oil prices gone down all over the world,but no country imposed any tax on expats or its residents. Instead of reducing budget for useless expenses burden is being imposed on expats,and main affected people who pay rent from their salaries.
Instead of reducing house rents and getting money from the owners who own the property and earn millions from their towers every year burden is being poured on expat workers.
Tax must be taken from wealthy and person who is taking advantage of the property.
Is there any property tax in the country?
Is there any income tax on the income of property owner annually taking very high money in terms of rent for 30 years old buildings.
I think it is unfair to impose tax on the tenants,it should be on the income of the owner and taken from the same bank managing the property,
However in national interest of UAE any step taken must not differentiate between local or expats. Both must contribute maximally.