CORPORATE TAX IN THE UAE
The United Arab Emirates has announced the implementation of corporate tax (CT) on 31 January 2022, which will be effective from 1st June 2023. It mainly focuses on corporate dealings, economic growth, and international standards & will not only permit economic growth but will further change UAE position as leading jurisdiction for business and investment. The TAXABLE PERSONS are Companies (legal person) and also individuals (natural person) who carry on sole establishments or individual partners in an unincorporated partnership. The income solely derived from the commercial activities that individuals carry out for partnership.CT will apply to all UAE companies, or foreign entities who have permanent establishment within UAE. Free zone businesses that comply with all regulatory requirements & do not conduct business set up in the UAE mainland.Banking operations, real estate, construction, brokerage activities. The NON TAXABLE PERSONS are Federal and Emirate Governments and their departments, authorities and other public institutions.Charities and other public benefit organizations listed in cabinet decisions. Public and regulated private social security and retirement funds. With the introduction of corporate tax, the UAE reaffirms its commitment to meeting international standards by diversifying its economy to reduce and tackle rising competition from economies and will impact the commercial industry significantly.
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