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Follow on Google News | Corporate Tax in Dubai 2023 - Free zones exemptedThe UAE began rolling out a 9% business tax in June, with exemptions for the many free zones which power its economy, as the formerly tax-free oil producer seeks to boost non-oil revenue and remain a regional commercial hub.
By: IndotInc The Ministry of Finance, in new regulations, said qualifying entities in the UAE's more than 30 free zones - which export tens of billions of dollars of goods to neighbouring states - will be subject to a 0% rate, even when dealing with the mainland on certain strategic activities such as manufacturing, goods processing and logistics services. The government has said it introduced the tax to align with international efforts to combat tax avoidance, as well as to address challenges arising from the digitalisation of the global economy. The UAE does not levy personal income taxes. Companies will become liable for corporate tax when their financial years start, meaning tax returns will not fall due until 2025. The UAE tax coincides with a new global minimum corporate tax from the Organisation for Economic Cooperation and Development (OECD), signed by 136 signatories including the UAE, to ensure big companies pay a minimum 15% and make tax avoidance harder. The UAE's move towards a global minimum tax on multinational corporations, endorsed by the G20, highlights its commitment to international tax reform and the readiness to work collaboratively with other countries to ensure a level playing field for all businesses. Overall, the introduction of corporate tax in the UAE is a significant milestone in the country's economic development, and its successful implementation will have positive implications for the country's future economic growth and prosperity. Nevertheless, the tax rates remain very moderate. Do not hesitat to contact us for more information. (https://www.indotinc.com) End
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