UAE companies encouraged to commit percentage of profits to charity
Volunteers
distribute water to labourers living in the Satwa neighborhood of Dubai.
Companies will be offered incentives and write-offs for supporting charitis
and initiatives identified by the government
Companies are to be offered government guidance on how to kick-start
corporate social responsibility programmes and start giving back to
low-income workers and people with disabilities.
The percentage of business profits to be earmarked for charity will be
announced by the year's end but one top government official said it was time
companies taking advantage of the UAE's tax haven status "pay back
something".
Donations will not be mandatory, said Ahmad Julfar, director-general of the
Community Development Authority, which is among the government organisations
that have made recommendations to federal authorities on the subject.
“The CDA will have a role in implementation in Dubai. In Abu Dhabi and other
emirates there will be other local authorities who will establish the
criteria of the CSR initiatives, find opportunities and measure the quality
of the activities,” he said.
“We have recommended to the ministry that companies should contribute to CSR
because the UAE is a tax haven. There are many benefits to businesses here
so it’s time they pay back something.”
Companies will be offered incentives and write-offs for supporting plans
identified by the government and the percentage of the donation could depend
on the size of the business, he said.
“It will be a benefit for companies because the more they do for society,
they will be rewarded. It could be concessions or reduction of government
fees depending on how much the company has contributed,” Mr Julfar said.
Volunteers
distribute water to labourers living in the Satwa neighborhood of Dubai.
