UAE ranked among top 10 countries on 28 financial and tax competitiveness indices

Five leading global organizations specializing in competitiveness assessment have ranked the UAE among the top ten countries in the world in 28 finance and tax-related competitiveness indices.

This was highlighted by a report from the Federal Competitiveness and Statistics Center (FCSC), which documented rankings from the IMD World Competitiveness Yearbook, the Legatum Prosperity Index, the World Economic Forum’s Travel and Tourism Competitiveness Report, the Global Talent Competitiveness Index (GTCI ) and the Global Competitiveness Index 4.0.

According to the report, the UAE ranked first in the Real Personal Tax Index, Personal Income Tax Collected Index, Low Tax Evasion Index, Indirect Tax Revenue Collected Index, Lack of Wasteful Public Spending Index, and Best Timing of Tax Returns Index.

The UAE was also ranked second in the world in the areas of corporate tax collection, real increase in government spending, and capital and property tax collection, while it ranked third in the areas of intergovernmental transfers, public debt consumption taxes.

In January 2018, the UAE adopted the value-added tax (VAT), which is a 5% indirect tax on most goods and services provided at each stage of the supply chain.

In the fourth quarter of 2017, the country also adopted an excise tax to discourage the consumption of health-damaging products, including tobacco, energy drinks, and soft drinks.

In addition, the uae has joined the top 10 countries in business competitiveness in the areas of finance and taxation, thanks to its policy of not applying income taxes and focusing only on indirect taxes, such as VAT and excise duties.

While many countries are considering raising taxes on personal and corporate profits, the UAE ranks first in the world in terms of lack of real personal taxes and low tax evasion rates, which has enhanced its attractiveness to foreign direct investment.

In its 2020 report, the World Economic Forum (WEF) ranked the UAE third in the world for its low consumption tax rates and fifth in the world for the low impact of taxes on employment incentives. In addition, the country was ranked eighth globally for the impact of taxes on investment and seventh globally for the availability of investment capital, according to the Legatum Prosperity Index.