The United Arab Emirates(UAE) has announced a new tax on the country. According to Emirati media, the UAE Ministry of Finance has announced that the UAE will introduce 9% corporate tax on business profits, introducing corporate tax on business profits for the fiscal years beginning June 1, 2023 or later. However, considering small business, there will be no tax on profits up to 375,000 dirhams. Reportedly, the corporate tax system is designed to incorporate best practices globally and reduce the compliance burden on businesses. Corporate tax will be payable on the profits of UAE businesses as they As reported in the Financial Statements of India, prepared with minimum exceptions and adjustments in accordance with internationally accepted accounting standards, corporate tax will apply equally to all businesses and commercial activities. The UAE Ministry of Finance has stated that businesses will be given ample time to prepare for the introduction of corporate tax in the UAE, on personal income from employment, real estate and other investments or by these individuals. No corporate tax will be levied on any other income earned from any other form of business or commercial activity that is licensed or otherwise allowed to start in the UAE. It said that while recognizing the cooperation of free zones in the UAE economy and competitiveness, the corporate tax incentives currently being offered to free zone businesses that comply with all regulatory requirements would be respected. And those who do not do business with the mainland UAE. Younis Haji Al Khoury, Under Secretary, Ministry of Finance, said that the UAE, as a leading authority for innovation and investment, plays a vital role in promoting local and global business. Combined with the extensive dual tax treaty network, the UAE’s position as a world-renowned hub for business and investment will strengthen its belief in a competitive and best-class corporate tax system, with the introduction of corporate tax The UAE reiterates its commitment to meeting international standards for tax transparency and preventing harmful tax practices.
