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New Corporate Tax announced in UAE.

United Arab Emirates is known as business hub in Middle East, because of its geographical location it play a huge role in trading and transport of goods and people. The UAE has develop a sustainable infrastructure which help import and exporter to do trade through UAE. till now the UAE is known as places for tax saving there no corporate tax, No income Tax and few years before there no VAT as well.


   

The UAE will introduce a federal Corporate Tax on business profits effective for financial years starting on or after 1 June 2023. The UAE Corporate Tax regime has been designed to incorporate best practices globally and minimise the compliance burden for UAE businesses.

Given the position of the UAE as a global financial centre and an international business hub, the UAE Corporate Tax regime will support investment and headquarters activities and ensure the free flow of capital, trade, financing, and services.

His Excellency Younis Haji Al Khoori, Undersecretary of Ministry of Finance (MoF), “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. The introduction of a Corporate Tax regime will help the UAE achieve its strategic ambitions and incentivise businesses to establish and expand their activities in the UAE,"

With a standard statutory tax rate of 9% and a 0% tax rate for taxable profits up to AED 375,000 to support small businesses and startups, the UAE Corporate Tax regime will be amongst the most competitive in the world.

Source: https://www.mof.gov.ae/en/media/materials/News/Pages/31012022.aspx 

the above information is clearly show the source of the information.

This move will strengthen the UAE economy and provide an alternate from oil base economy. Yes it will take some time in implementation but this will surely count as positive move towards sustainable future growth of the country.


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