The UAE has set a June 2023 date for the debut of a 9% federal corporate tax on business profits.
The ministry of finance has stated that the tax will not apply to personal income, real estate sales or income earned outside the UAE. Other exceptions include companies located in the country’s numerous free zones that conduct offshore business and oil and gas companies that are subject to tax laws of their own.
Nor will the tax rate be applied to investments or income earned from outside of the UAE in order to protect its ambition to attract more international businesses to the emirate.
The move comes at a time when the UAE has come under pressure over its anti-money laundering practices. In January it was reported that the Financial Action Task Force was considering placing the UAE on a ‘greylist’.
Younis Haji Al Khoori, under-secretary at the ministry of finance, said: “The UAE reaffirms its commitment to meeting international standards for tax transparency and preventing harmful tax practices.”
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