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Dubai’s telecom operator Emirates Integrated Telecommunications Company (Du) said that its royalty fees to the Federal Government will remain unchanged for the next few years.
Du announced that the annual royalties it will pay to the government for 2022 to 2024 will be 15 percent of the company’s revenues and 30 percent of its profit.
The rates will be applied to the telecom firm’s revenues and profit from its domestic operations and are line with the royalties paid between 2017 and 2021.
“The Federal Royalty calculation mechanism for the period 2022-2024 will be maintained as the same as the one for the period 2017-2021,” Du said in a statement to the Dubai Financial Market (DFM).
“The annual Federal Royalty Fee will be calculated as the sum of 15 percent of the company’s annual regulated revenues plus 30 percent of the company’s annual regulated profit, both generated from UAE operations.”
The fees were first implemented in 2016. The Dubai-based telecom services provider had previously paid lower fees: 5 percent of revenues and 17.5 percent of net profit in 2012; 7.5 percent and 20 percent in 2013; 10 percent and 25 percent in 2014; and 12.5 percent and 30 percent in 2015.
(Writing by Cleofe Maceda; editing by Daniel Luiz)
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