Does UAE Planning to Introduce Income Tax? Minister clarifies
In an interview, the minister clarifies the UAE planning to introduce income tax or not. He stated that “Now, this is not on the table,” Thani Al Zeyoudi was mentioned as clarified by an interview in a response to a question regarding income tax.
The interview is available in the wake of the Ministry of Finance of the UAE statement made on January 31 regarding the intro of corporation tax on business revenues that will certainly work for fiscal years beginning on or after 1 June 2023. With a conventional legal tax price of 9% and a 0% tax price for taxable revenues as much as DH 375,000 to sustain small businesses as well as startups, the UAE corporate tax program will be among the one of the most affordable in the world.
New corporate tax of the UAE has been received in a positive way by corporations, stated the Minister. The new application is going to replace most of the costs corporations now need to pay, as per Al Zeyoudi.
The Gulf country has taken already many moves to cut its prestige as a tax haven for both individuals and businesses. In 2018, the country introduced VAT at 5 percent. This taxes already insurance corporations and banks functioning outside the nation’s large network of free zones up to 20% on their earnings. The oil and gas sector of the third-biggest producer of the OPEC is also taxed in a separate program.
In the coming weeks, the Ministry of Finance is predicted to declare more information on how corporate tax would be imposed.