Last Updated on: 14th July 2023, 08:25 am
UAE Will No Longer Be Tax-Free in 8 Days
The United Arab Emirates (UAE) is facing a major shift from tax exemption to imposing a 9% corporate tax. The decision of the Federal Tax Office (BVGer) will come into effect on 1st June 2023.
UAE employees who receive a single source of income through salary payments need not worry as their earnings remain exempt from income tax.
Corporate tax registration began on May 15. Under the Free Trade Agreement, public companies and private companies can register through the EmaraTax platform, while registration for the free zone and other companies will open later.
The agency also noted that early registration will allow companies to properly comply with legal requirements.
Severe economic sanctions are imposed in the event of non-registration for corporate income tax or non-declaration of accounts. Therefore, it is advisable not to postpone these obligations.
Exemption From Corporate Income Tax
Last month, the Ministry of Finance (MoF) published a list of companies that are exempt from corporate tax registration under corporate and business taxes.
The list included governmental organizations, state-controlled companies, and companies that extract raw materials/non-extractive raw materials and meet the criteria set out in the Corporate Income Tax Act.
Non-UAE residents who do not have a permanent organization there also do not need to register for corporate income tax if their sole source of income is in the UAE.
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