No UAE income tax for now, minister says in the wake of corporate tax move
The UAE will not introduce an income tax for the time being, a senior official said, weeks after the nation unveiled a new company levy.
“It is not at the table at all now” Dr Thani Al Zeyoudi, the minister of state for foreign trade, told Bloomberg TV in an interview Monday.
The UAE announced earlier this year, it would impose a 9 percent corporate tax starting in 2023.
As it seeks to align itself with new international standards.
But particularly; the move toward a global minimum tax on multinational corporations, endorsed by the Group of 20 major economies.
The UAE’s new corporate tax has been received in a “positive manner” by businesses, said the minister.
The new levy is going to replace most of the fees companies now have to pay, according to Al Zeyoudi.
The nation has already taken several steps to improve its taxation structure for both businesses and individuals.
And it introduced a 5 percent value-added tax in 2018; which already taxes banks and insurance companies operating outside of the country’s vast network of free zones; as much as 20 percent on their profits.
The oil and gas sector of OPEC’s third-biggest producer is also taxed under a separate program.
Over the next few weeks, the Ministry of Finance is expected to announce more details, clarifying how the corporate tax will be imposed.