Financial: including masks and sterilizers
Personal protective equipment from "Corona" is subject to "zero tax"
Yunus El-Khoury: “The Ministry of Finance has adopted precautionary tax policies to overcome the repercussions of Corona.”
The Undersecretary of the Ministry of Finance, Yunus Haji Al-Khoury, confirmed that a cabinet decision had been issued regarding subjecting some medical equipment used in personal protection from "Covid-19", whether masks, sterilizers or others, to the temporary zero rate applicable in the value-added tax.
He told "Emirates Today": "The Ministry of Finance continues to work on developing its tax system policy on a regular basis, in line with developments in the international arena, and strengthening the country's position in various indicators of global competitiveness."
He added that “following the initiatives undertaken by the state, the Ministry has adopted precautionary tax policies to overcome the repercussions of the emerging (Corona) virus crisis,” referring in this context to the issuance of a decision on subjecting some medical equipment to zero-rate tax.
He explained: "It is meant by medical equipment that is subject to temporary zero-rate rules, personal protective equipment used to prevent (Covid-19)."
He stressed that the ministry is following up the incentive measures that have been taken to support the national economy, in light of the pandemic, pointing out that the UAE government has moved quickly to respond to the consequences of the "Covid-19" crisis at the federal and local levels, by launching large financial stimulus packages to reduce the burden on the private sector, from By cutting the cost of doing business, with deep cuts in government fees, debt relief and corporate payments.
It is noteworthy that a zero tax rate means that companies pay value-added tax and recover it from the government at the end, so the rate is zero on specific supplies in Decree-Law No. (8) of 2017.
Zero tax rate means that companies pay the tax and then recover it.
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