Pensions: Who will benefit from the exemption?

Starting next year, basic retirement pensions (excluding supplementary pensions) will be exempt from income tax. This measure, which will be implemented in two stages (50% in 2025 and 50% in 2026), will cost the Government almost 1.2 billion dirhams (USD 120 million). However, for a majority of pensioners, particularly those in the private sector, this provision is likely to have little or no impact.