The UAE will introduce a 9 per cent corporate tax on business profits of more than Dh375,000 ($102,000) from June 1, 2023, the Finance Ministry said, in a major change of course, as the country seeks to diversify its income.

For the UAE, the regional headquarters for a swathe of multinationals, the move marks a critical shift from its long-held status as a tax-free haven for business and commerce.

The new corporate tax regime, long anticipated since the UAE imposed a 5 per cent value-added tax (VAT) on January 1, 2018, has kept a low base to maintain the country’s attractiveness for businesses.

“Corporate tax will be payable on the profits of the UAE businesses as reported in their financial statements prepared in accordance with the internationally acceptable accounting standards, with minimal exceptions and adjustments,” the Finance Ministry announced on January 31, 2022.

“The UAE corporate tax regime will be among the most competitive in the world,” said a statement carried by the official WAM news agency. A 9 per cent is at the lower end of the corporate taxes worldwide.

source : https://www.bolnews.com/