The United Arab Emirates is working on amending the law governing taxes on profits to ensure that both foreign and local banks are treated equally, in line with WTO rules, Sultan bin Nasser Al Suwaidi, Central Bank Governor, said Saturday.
Currently, foreign banks pay an annual 20 per cent tax on net profits to the local authorities while national banks do not pay any tax on profits.
"The disparity is under review by the Central Bank board and you might see a change. There is a tendency to equalise the treatment, to treat both foreign and local banks equally," Al Suwaidi told Gulf News on the fringes of a regional seminar that began Saturday.
Asked if national banks might have to pay taxes, the governor was non-committal, "I wouldn't say this about national banks paying tax. Or foreign and national banks not paying taxes.
"The Central Bank is reviewing the issue and we want to ensure that national and foreign banks are treated equally." (menareport.com)
© 2004 Mena Report (www.menareport.com)
