The UAE, lengthy referred to as a tax haven, will tax industry earnings over $102,000 at 9 % from June subsequent 12 months, a remark mentioned.
The UAE switched from Friday-Saturday weekends to Saturdays and Sundays this 12 months to align nearer with world markets. (Picture: Reuters)
The United Arab Emirates will introduce a company tax from mid-2023, the finance ministry mentioned Monday, in a big alternate in fact as the rustic seeks to diversify its source of revenue.
The Gulf monetary centre, lengthy referred to as a tax haven and the regional headquarters for a swathe of multinationals, will tax industry earnings over 375,000 AED ($102,000) at 9.0 % from June subsequent 12 months, a remark mentioned.
The announcement is the most recent important transfer via the UAE, which switched from Friday-Saturday weekends to Saturdays and Sundays this 12 months to align nearer with world markets.
“The UAE company tax regime will likely be among essentially the most aggressive on the earth,” mentioned a remark carried via the professional WAM information company. 9 % is on the decrease finish of company taxes international.
There are not any plans to introduce private source of revenue tax or capital beneficial properties tax from actual property or different investments, the ministry mentioned.
The UAE, a big oil exporter but additionally a large participant in industry, commerce, shipping and tourism, is diversifying to scale back its reliance on crude.
It is usually going through emerging pageant from neighbouring Saudi Arabia, the arena’s greatest oil exporter, which is pursuing its personal force to diversify its financial system and draw in overseas companies.
“With the creation of company tax, the UAE reaffirms its dedication to assembly world requirements for tax transparency and combating damaging tax practices,” Younis Haji Al Khoori, Undersecretary of the Ministry of Finance, mentioned within the remark.
Tax incentives within the UAE’s free-trade zones will stay in position, it added.
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