UAE ranks second worldwide in combating tax evasion

Dubai: The UAE has ranked second in worldwide in combating tax evasion, and fifth globally in the efficiency of tax policies, according to the latest annual report from the IMD World Competitiveness Centre in Switzerland.

The announcement came during a Cabinet meeting on Monday, chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, held at Al Watan Palace in Abu Dhabi.

Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Chairman of the Presidential Court; Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE; and other officials were present at the Cabinet meeting.

Sheikh Mohammed attributed the country’s tax success to “the tireless efforts of dedicated Emirati teams,” which, he noted, have resulted in the registration of 520,000 companies under the corporate tax system and 470,000 entities under the VAT system.

During the meeting, the Cabinet reviewed the latest developments related to the country’s efforts to build the UAE’s tax system, a vital pillar supporting the nation’s financial sustainability and reinforcing our global competitiveness.

Sheikh Mohammed emphasized that a robust and efficient tax framework is fundamental to completing the UAE’s economic infrastructure for the future, noting that its effectiveness serves as a key indicator of the economy’s strength and resilience.

“Over recent years, a new culture of tax awareness and compliance has taken root across sectors, an achievement that reflects the maturity and adaptability of our economic landscape,” Sheikh Mohammed added.

“We extend our sincere appreciation to the entire team whose dedication continues to shape a world-class tax system, helping to secure the financial sustainability of the UAE’s ongoing development journey.”

The UAE Cabinet also approved 44 international agreements across the economic, developmental, and governmental sectors.

It also authorised the commencement of negotiations on investment protection and promotion agreements with 30 countries worldwide.

“The UAE will continue to build strong investment and economic ties with all friendly and brotherly nations, and we will continue to pursue an open economic approach, one that has firmly established its global competitiveness and strengthened its position as a strategic hub connecting East and West,” the UAE Vice President said.