Abu Dhabi [UAE]Feb 1 (ANI): Companies in the United Arab Emirates will now be subject to a new 9% corporation tax from the start of their first financial year which begins in June 2023 or later, Arab News reported.
Notably, this new program will leave intact the exemption of individuals from income tax, tax on capital gains and other investments, and other non-business income.
Previously, in 2018, the UAE introduced a value added tax on most goods and services at a standard rate of 5%.
The UAE also imposes a 20% tax on branches of foreign banks operating in the country and on companies with concession agreements in the oil and gas sector up to 55% at the emirate level.
With the move, the UAE is following in the footsteps of other Gulf Cooperation Council countries in implementing corporate tax systems, with five of the six GCC countries currently doing so, Arab News reported.
Meanwhile, after the United Arab Emirates, Qatar has the second lowest corporate tax at 10%, followed by Oman and Kuwait at 15%. Saudi Arabia has the highest corporate tax rate at 20%. (ANI)