UAE Explores Possibility to Introduce More Taxes

  • Publish date: Thursday، 22 December 2022
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A new corprate tax was introduced last week in the UAE by Federal Tax Authority (FTA), however, the authority is already exploring the option of introducing more according to Emirates News Agency - WAM.

FTA Director General, Khalid Ali Al Bustani, said: “The Federal Tax Authority’s strategy for exploring the future of the tax sector primarily aims to identify the basic motives, scenarios, and proactive measures required for sustainably upgrading tax procedures in the UAE, and promoting a culture of future-mapping within, paving the way for it to become a world leader in the field.”

Read More: UAE 9% Corporate Tax to be Effective from This Date with Exemptions

Read More: UAE Introduces 9% Tax on Business Profit

A nine percent corporate tax on profits exceeding Dhs375,000 was introduced, alongside changes to the country’s VAT laws last week. This will be effective from June 1, 2023.

Nine Percent Tax Details 

The UAE’s Corporate Tax regime will levy a standard rate of 9 percent for taxable profits exceeding AED375,000. Profits up to and including that threshold will be taxed at a 0 percent rate to support small businesses and start-ups.

Exemptions from Corporate Tax

  • Natural resource extraction activities in the country are exempt from Corporate Tax; however, they remain subject to existing local emirate-level taxation.
  • Other exemptions are available to organisations such as government entities, pension funds, investment funds and public benefit organisations due to their vital importance and contribution to the social fabric and economy of the UAE.
  • Existing free zone entities will be eligible to benefit from a 0 percent Corporate Tax rate on qualifying income.
  • Corporate Tax will not be applied to salaries or other personal income from employment, whether it is earned from work in the government, semi-governmental or private sector.
  • Interest and other personal income earned from bank deposits or savings programmes are also not subject to Corporate Tax, as well as investment in real estate by individuals in their personal capacity.

This article was previously published on UAE Moments.To see the original article, click here

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