DUBAI, United Arab Emirates — The
UAE will introduce a
corporate tax from mid-2023, the finance ministry said Monday, in a major
change of course as the country seeks to diversify its income.
اضافة اعلان
The Gulf financial center, long known as a tax haven and the
regional headquarters for a swathe of multinationals, will tax business profits
over 375,000 AED ($102,000) at 9 percent from June next year, a statement said.
The announcement is the latest significant move by the UAE,
which switched from Friday–Saturday weekends to Saturdays and Sundays this year
to align closer with global markets.
"The UAE corporate tax regime will be amongst the most
competitive in the world," said a statement carried by the official WAM
news agency. Nine percent is at the lower end of corporate taxes worldwide.
There are no plans to introduce personal income tax or
capital gains tax from real estate or other investments, the ministry said.
The UAE, a major oil exporter but also a big player in
business, trade, transport, and tourism, is diversifying to reduce its reliance
on crude.
It is also facing rising competition from neighboring
Saudi Arabia, the world's biggest oil exporter, which is pursuing its own drive to
diversify its economy and attract foreign businesses.
"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,
finance ministry undersecretary, said in the statement.
Tax incentives in the UAE's free-trade zones will remain in place,
it added.
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