UAE to impose corporate tax on business profits
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On Monday, the United Arab Emirates announced it would impose a federal corporate tax of 9% on business profits, effective from June 1, 2023. The tax will be levied from all corporations except those involved in "extraction of natural resources". Businesses with profits up to 375 thousand dirhams will be categorised as small businesses and will be exempted from the tax. The Emirates has long been a low tax country with no personal tax. The Ministry of Finance said the tax was being imposed to combat tax avoidance and to realign the country on
On Monday, the United Arab Emirates announced it would impose a federal corporate tax of 9% on business profits, effective from June 1, 2023.
The tax will be levied from all corporations except those involved in "extraction of natural resources". Businesses with profits up to 375 thousand dirhams will be categorised as small businesses and will be exempted from the tax.
The Emirates has long been a low tax country with no personal tax. The Ministry of Finance said the tax was being imposed to combat tax avoidance and to realign the country on major issues such as the digitalisation of the global economy. It may be linked to a recent international agreement on a minimum global corporate tax rate but the Ministry did not elaborate.
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Read the source: Wikinews ↗Source published 1 Feb 2022, 05:30 am IST
