First, UAE Changed Weekends To Sat-Sun. Now, A Big New Rule

Dubai:

The United Arab Emirates will introduce a company tax from mid-2023, the finance ministry stated Monday, in a serious change in fact because the nation seeks to diversify its revenue.

The Gulf monetary centre, lengthy generally known as a tax haven and the regional headquarters for a swathe of multinationals, will tax enterprise income over 375,000 AED ($102,000) at 9.0 p.c from June subsequent 12 months, an announcement stated.

The announcement is the newest important transfer by the UAE, which switched from Friday-Saturday weekends to Saturdays and Sundays this 12 months to align nearer with international markets.

“The UAE company tax regime might be amongst probably the most aggressive on this planet,” stated an announcement carried by the official WAM information company. 9 p.c is on the decrease finish of company taxes worldwide.

There are not any plans to introduce private revenue tax or capital positive factors tax from actual property or different investments, the ministry stated.

The UAE, a serious oil exporter but additionally an enormous participant in enterprise, commerce, transport and tourism, is diversifying to scale back its reliance on crude.

It’s also dealing with rising competitors from neighbouring Saudi Arabia, the world’s largest oil exporter, which is pursuing its personal drive to diversify its economic system and appeal to international companies.

“With the introduction of company tax, the UAE reaffirms its dedication to assembly worldwide requirements for tax transparency and stopping dangerous tax practices,” Younis Haji Al Khoori, Undersecretary of the Ministry of Finance, stated within the assertion.

Tax incentives within the UAE’s free-trade zones will stay in place, it added.

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