The UAE, lengthy often called a tax haven, will tax enterprise income over $102,000 at 9 p.c from June subsequent 12 months, a press release stated. The UAE switched from Friday-Saturday weekends to Saturdays and Sundays this 12 months to align nearer with world markets. (Photo: Reuters)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 often called 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, a press release stated.The announcement is the most recent important transfer by the UAE, which switched from Friday-Saturday weekends to Saturdays and Sundays this 12 months to align nearer with world markets.”The UAE corporate tax regime will be amongst the most competitive in the world,” stated a press release carried by the official WAM information company. Nine p.c is on the decrease finish of company taxes worldwide.There aren’t any plans to introduce private revenue tax or capital features tax from actual property or different investments, the ministry stated.The UAE, a serious oil exporter but in addition an enormous participant in enterprise, commerce, transport and tourism, is diversifying to cut back its reliance on crude.It can be dealing with rising competitors from neighbouring Saudi Arabia, the world’s largest oil exporter, which is pursuing its personal drive to diversify its financial system and appeal to international companies.”With the introduction of corporate tax, the UAE reaffirms its commitment to meeting international standards for tax transparency and preventing harmful 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.Click right here for IndiaToday.in’s full protection of the coronavirus pandemic.