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.
Related news
- "130 OECD countries agree to back global corporate tax rate" — Wikinews, July 4, 2021
Sister links
Sources
- No more tax-free: UAE to impose federal corporate tax for first time — WION, February 1, 2022
- Aya Bawtrawy. UAE to impose federal corporate tax for the first time — ABC News (United States), January 31, 2022
- Hadeel Al Sayegh and Moataz Mohamed. UAE to launch first federal corporate tax on business profits from June 2023 — Reuters, January 31, 2022
Source & Attribution
Originally published by Wikinews on February 1, 2022. Original author: Wikinews.
CC BY 2.5. Photograph: Maktoum bin Mohammed Al Maktoum, the deputy prime minister and finance minister of the United Arab Emirates.
Image: ITU Pictures. Photo: itupictures, photographed by Rowan Farrell https://www.flickr.com/photos/itupictures/8085659783/ Source file. CC BY 2.0. CC BY 2.0.
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