A comparative Analysis of Tax Policies in France and the United Arab Emirates (Essay Sample)

A comparative Analysis of Tax Policies in France and the United Arab Emirates Name Affiliation Course Instructor Date A comparative Analysis of Tax Policies in France and the United Arab Emirates The tax regime of any country is the cornerstone for the prosperity and well-being of its people. The tax system of France and the United Arab Emirates (U.A.E.) has significant differences in structure and economic effects. The differing tax policies in France and the U.A.E. have diverse impacts on the state, businesses, and workers, demonstrating the complex link between fiscal balance, economic stimulation, and social welfare. France and the U.A.E. have distinct income tax systems for employees. The U.A.E. has a zero-income tax scheme for employees, enabling high wage remunerations (Abdulla, 2017). In contrast, France enforces a liberal income tax model that enhances social programs. Unlike the U.A.E. regime, the French system levies high tax rates on high-income employees, which disproportionately impacts low-income employees. Moreover, France and the U.A.E. implement divergent corporate and personal taxation schemes. France's state revenue model focuses on supporting public services and ring-fencing primary socio-economic services. Conversely, the U.A.E. tax system has subsidized personal and corporate taxation. Therefore, the French taxation scheme impedes economic growth for the state, while the U.A.E. regime is highly dependent on non-tax revenue sources, making the state susceptible to economic doldrums. Additionally, the two countries practice unique taxation frameworks with diverse impacts on businesses. France provides broad tax incentives to corporations to support ventures and innovations (Fack & Landais, 2016). The U.A.E. adopts a different corporate tax scheme, focusing on levying no corporate tax for various sectors. While such policies promote investment, they are susceptible to risks. Conclusively, France and the U.A.E have unique differences...