The Finance Ministry of the United Arab Emirates (UAE) on 10th of May 2017 arranged a briefing session in respect of the new Excise Tax Law. Implementation of the UAE Excise Tax Law follows the Gulf Cooperation Council (GCC) Ministers of Finance approval in principle, of a unified agreement, in June 2016. In accordance with agreement, excise duty will be introduced in the UAE by the fourth quarter of 2017. The other GCC Member States also have a plan to implement the excise tax by the end of 2017. The 5 per cent excise tax is to be implemented across the GCC countries by 2018. The UAE government has proposed a 50 per cent excise tax on carbonated drinks, and a 100 per cent tax on energy drinks, tobacco and tobacco products. The importer will need to pay the accurate amount of excise tax to the tax authority before discharging the goods from the designated storage area. The final excise tax law is expected to be published before the end of June.
Related Posts

UAE consults on implementing e-invoicing
The UAE Ministry of Finance has released a consultation document outlining plans to implement electronic invoicing (e-invoicing). The consultation seeks to: Establish a common understanding of data elements used in e-invoices across business
Read More
Russia, UAE sign new tax treaty
Representatives from Russia and the UAE have signed a new income and capital tax treaty on 17 February 2025 . The treaty will come into effect after the exchange of ratification instruments, and once it is in force, it will replace the limited
Read More
UAE updates excise tax on e-smoking, VAT correction rules
The UAE Ministry of State for Financial Affairs issued Ministerial Decision No. 1 of 2025 on 3 January 2025, revising the excise tax framework for electronic smoking devices. This decision, effective from 3 January 2025, replaces Ministerial
Read More
UAE publishes details of domestic minimum top-up tax law
The UAE Ministry of Finance has published a copy of Cabinet Decision No. 142 of 2024, detailing the country’s Domestic Minimum Top-up Tax (UAE DMTT) law. The Decision enacted a DMTT for multinational enterprises (MNEs). This measure aligns with
Read More
UAE: Cabinet approves protocol to 2011 tax treaty with Switzerland
The UAE Cabinet of Ministers approved the protocol to the 2011 tax treaty with Switzerland on 2 January 2025. Switzerland and the UAE signed a protocol amending the agreement for the avoidance of double taxation (DTA) with respect to taxes on
Read More
UAE introduces domestic minimum top-up tax for multinational enterprises
The UAE Ministry of Finance has announced the issuance of Cabinet Decision No. 142 of 2024 on the introduction of the Top-up Tax for Multinational Enterprises, providing further details on the UAE Domestic Minimum Top-up Tax (UAE DMTT). This
Read More