Dubai: The United Arab Emirates will introduce corporate taxes from mid 2023, the Ministry of Finance said Monday, in a big change of course because the country tried to diversify its income.
The Gulf Finance Center, which has long been known as a tax heaven and regional headquarters for the rusty of multinational companies, will burden business profits of more than 375,000 AED ($ 102,000) at 9.0 percent from June next year, said a statement.
This announcement is the latest significant step by the UAE, which switched from Friday-Saturday-Saturday to Saturday and Sunday this year to align closer to the global market “The UAE corporate tax regime will be among the most competitive in the world,” said a statement brought by the official WAM news agency. Nine percent are at the lower end of the company’s tax throughout the world.
There are no plans to introduce personal income tax or capital gain tax from real estate or other investments, the ministry said UAE, major oil exporters but also large players in business, trade, transportation and tourism, diversification to reduce their dependence on crude oil It also faces the increasing competition from neighboring Saudi Arabia, the world’s largest oil exporter, which pursues its own encouragement to diversify its economy and attract foreign business.
“With the introduction of corporate taxes, the UAE reaffirms its commitment to meet international standards for tax transparency and prevent dangerous tax practices,” Younis Haji Al Khoori, said the financial ministry, said in the statement Tax incentives in the UAE free trade zone will remain in place, he added.