UAE’s Ministry of Finance announced that it will be introducing a federal corporate tax on profitable businesses.
However, this will not apply to people who acquire income from employment, real estate and other investments.
The rates implied are set to be amongst the most competitive in the world. This tax will apply to profitable businesses from the beginning of their financial year, which starts in June.
While a standard statutory tax rate of 9% will apply to businesses with a profit of Dh375,000 and above, multinationals earning more than 750 million euros in profit will be subjected to a 15 per cent rate. Hence, applicable ventures are required to enrol for tax registration.
The Ministry of Finance to introduce federal corporate tax on business profits that will be effective for financial years starting on or after 1 June 2023. pic.twitter.com/fbn5QiAByj
— وزارة المالية | الإمارات (@MOFUAE) January 31, 2022
The vision behind the introduction of this tax is to amplify the country’s development. “As a leading jurisdiction for innovation and investment, the UAE plays a pivotal role in helping businesses grow, locally and globally. The certainty of a competitive and best-in-class corporate tax regime, together with the UAE’s extensive double tax treaty network, will cement the UAE’s position as a world-leading hub for business and investment”, said Younis Haji Al Khoori, Undersecretary of the Ministry of Finance.
For further information, please visit the Federal Tax Authority website: https://tax.gov.ae/en
– For more on luxury lifestyle, news, fashion and beauty follow Emirates Woman on Facebook and Instagram
Feature Image: @visitdubai