Etisalat & Du will both pay 40% 'tax'

UAE government set to announce annual royalty rate of 40% for both telecoms operators.

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By  Rob Corder Published  February 5, 2007

The United Arab Emirates government will announce by April a royalty scheme for telecom operators that will effectively set a corporation tax for the two telecoms operators.

It is expected to be set at 40% of annual profits, a reduction for the current monopoly supplier, Etisalat, which pays 50% of profits to the state today, but not the 20% rate that the corporation asked the government for in October last year.   Etisalat and soon to be launched second operator, du, would both pay the same 40% rate, according to Sultan al-Mansoori, Minister of Development for Government Sector.

The federal government will outline the royalty in a strategic plan for the country that is in final stages of discussion, he said.  

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