UAE to impose corporate tax on business profits
Tuesday, February 1, 2022
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 thousandwill 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. Thesaid the tax was being imposed to combat 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.
- "130 OECD countries agree to back global corporate tax rate" — Wikinews, July 4, 2021
- "No more tax-free: UAE to impose federal corporate tax for first time" — , February 1, 2022
- Aya Bawtrawy. "UAE to impose federal corporate tax for the first time" — , January 31, 2022
- Hadeel Al Sayegh and Moataz Mohamed. "UAE to launch first federal corporate tax on business profits from June 2023" — , January 31, 2022