Salk and Parkn Apply 5% Value Added Tax on Fees Starting June 1

In a significant move concerning transportation and parking services, Salk and Parkn, listed on the Dubai Financial Market, announced the implementation of a 5% value-added tax on their related fees starting June 1, 2026. These measures are part of the companies’ efforts to ensure compliance with local laws and provide exceptional services to users while maintaining transparency in financial transactions.

Details of Tax Implementation by Salk

Salk announced in an official statement that it will apply the tax to fare charges and the activation fees for fare cards, while the basic toll structure will remain unchanged. The company confirmed that the tax will be collected on behalf of the Federal Tax Authority, without impacting the company’s profits or financial position in the future. Salk reiterated its commitment to regulatory compliance standards and disclosing any updates according to legal requirements.

Financial Procedures and Liabilities

In its statement, Salk mentioned that it would begin applying the tax retroactively on revenues from July 1, 2022, until the end of the financial period on March 31, 2026. This step will result in liabilities amounting to approximately 471 million dirhams owed to the Federal Tax Authority, which includes the value-added tax and penalties due to late payment. The authority considers the Roads and Transport Authority responsible for settling these outstanding amounts in full.

Parkn’s Updates on the Tax

For its part, Parkn announced that it would implement a 5% value-added tax on the fees for public vehicle parking services, which include a variety of services such as roadside parking, parking reservations, and seasonal subscriptions. Parkn also confirmed that the basic fees will remain unchanged and that the tax will be collected on behalf of the Federal Tax Authority, without affecting its financial future.

Compliance and Transparency at Parkn

Parkn indicated that the tax would be collected retroactively for the period from February 1, 2024, to May 31, 2026. The company confirmed that the full amount due will be compensated by the Roads and Transport Authority, ensuring that this will not affect its financial position. Parkn emphasized its ongoing commitment to the highest standards of transparency and regulatory compliance, as well as its dedication to disclosing any future developments related to financial matters.

These measures by Salk and Parkn clearly demonstrate the companies’ commitment to local laws, contributing to enhanced transparency and financial stability in the public transportation and parking sector in Dubai.