Every now and again I have to remind myself of the promises that was made to me when I decided to relocate to Dubai - one of them was no tax (Yes I did believe it at the time - silly me!)
Anyway the following article from Gulf news contain some real screamers! See my quotes in
bold - Italic.
One Questions though- every tenant - is that equal to every expat tenant? Just asking!
Gulf News: High time to pay housing fee
High time to pay housing fee |
By Ashfaq Ahmed and Jay B. Hilotin, Staff Reporters
|
Dubai: Dubai Municipality has asked all real estate agencies to provide data about their tenants as part of its plans to ensure collection of five per cent housing fee on tenancy contracts, said a civic body official.
The step is being taken to ensure that every tenant in Dubai register his tenancy contract with the municipality and pay five per cent housing fee. Subsequently, an online registration facility will also be launched for tenants and landlords.
"We have chalked out a plan to get every tenant on board because they are bound by law to pay five per cent fee on tenancy contracts," said Abdul Karim Al Haj, Head of the General Revenues Section at the Dubai Municipality.
The civic body had started collecting housing fees through utility bills of Dubai Electricity and Water Authority since January last year.
The housing fee is applicable to all residents and commercial establishments.
However, fees on tenancy contracts of commercial establishments and shops are collected by the Dubai Economic Department at the time of licensing.
In return, the municipality provides a host of services, such as keeping the streets clean, clearing the garbage, undertaking pest control measures, and landscaping and beautification projects, among others. Al Haj said: "The new steps are being taken just to make sure that everyone pays it."
The municipality started collected housing fees since January last year with the DEWA bills. "First it was started with the new tenants applying for electricity and water connection but now all the tenants new and old in Dubai will be registered to ensure collection from everyone," said Al Haj.
While residents who applied for new Dewa connections pay the housing fee, many old residents who have not registered their tenancy contract do not. The municipality is registering new tenancy contracts at a rate of 200 per day. There are an estimated 250,000 tenants in the city, he said.
Conservatively speaking, if the average rent in Dubai is Dh35,000, five per cent fee will be Dh1,750, the civic body will collect around Dh437.5 million from the estimated registered contracts.
"All tenants must register their tenancy contract at a special counter the municipality opened in Dewa offices," the official said.
He said residents who deliberately delay the registration of their tenancy contract [to avoid paying the full housing fee] might be slapped with a fine. Off-site registration counters will also be installed in other Dewa branches by May, said Al Haj.
"It is unfair for those who are already paying the fees if the old tenants keep dodging it by failing to register with us," said the official.
For many years, the General Revenue Section of the Dubai Municipality has charged a flat housing fee from companies for each employee ranging from Dh300 to Dh1,000, depending on their designation.