Rental tax in UAE introduced

Time Out has news of rental tax in UAE introduced for all expatriate (expats) tenants. The three percent fee will be added to utility bills

Tax has been introduced on all expat tenants living in Abu Dhabi.

The three percent fee will be added to all rents secured by foreign workers as part of a new municipality fee.

According to The National, the charge, which was approved in February and already in operations, will be added to monthly utility bills, rather than be introduced as something new to pay.

The announcement brings the capital in line with Dubai where already a five percent municipality tax is paid on utility bills, and is the second such piece of news this week following confirmation that a four percent tax is to be added to the cost of hotel stays in Abu Dhabi.

Just over four million guests stayed in the UAE capital’s hotels last year, staying over 12 million nights. The National estimated the potential revenue from the new fees, based on those figures, at $122 million.

Meanwhile in Dubai, an airport usage charge for all passengers of Dhs35 was introduced.

These steps are part of a growing trend in the GCC to incorporate a region-wide value-added tax (VAT) over the medium term to lift non-oil revenues.

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