By Andrei Skvarsky.
The United Arab Emirates would exempt smaller and some other types of firms from profit tax and levy a flat tax of 9 per cent on all other businesses under a taxation regime to take effect on June 1, 2023.
Annual profits of a maximum of 375,000 dirhams ($102,000) would be exempt from tax as a way “to support small businesses and startups”, UAE news agency WAM said in a report.
There would also be other tax-exempt categories, including companies in extractive industries, government entities, pension funds and investment funds under the planned regime, based on a December 9 decree by UAE President Sheikh Mohammed bin Zayed al-Nahyan.
Extractive companies would be exempt from federal profit tax but would remain taxable under emirate legislation, WAM said.
All profits of more than 375,000 dirhams a year would be taxed at 9 per cent.
Though the presidential decree is commonly referred to as the Corporate Tax Law, the regime would apply to companies and sole proprietorships alike.
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