UAE to Impose 9% Corporate Tax From 2023 - Setup Business NowStarting in 2023, the UAE will implement a business tax rate.

The UAE is undergoing considerable upheaval. As of June 1st, 2023, the UAE’s Federal Tax Authority will start taxing businesses for the first time in its history. The country hasn’t paid corporate taxes since it was formed, making this a big move by the Government. This move means we are now on the same playing field as most other countries. We’re also more fair and transparent, and we can stop the bad practices we’ve seen in the past. Now that the United Arab Emirates has more simplified tax rates, you can better plan ahead with confidence and save money.

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The federal tax authority’s new corporate tax system is set up like this:

• Businesses that make more than Dh375,000 in taxable income will pay a standard tax rate of 9%.
• Businesses that make less than Dh375,000 in taxable income won’t be taxed.

The Corporations Tax has been put out to help small businesses and entrepreneurs while also putting them under the tax law.

People in the global economy want to make sure multinational corporations pay tax at the same rate as every other business and individual. You’re getting a company setup in the UAE with a tax system that will help you do your taxes correctly and opens doors for your business. The UAE is ready to grow with you. We help businesses set up in the UAE, with the new corporate tax rules, companies won’t have to pay taxes if they don’t do business with the rest of the country.

For new businesses set up in Dubai, a double tax treaty is already in place between the United Arab Emirates and other countries around the world. Since the new tax law, the country is set to keep its place as one of the world’s fastest-growing economies and one of the best places to do business, as well.

Comparison of Corporate Tax

The corporate tax has been implemented in other countries of the GCC. For example, Bahrain’s corporate tax rate is set at 20%. Qatar wants to implement 10%, Oman and Kuwait want to implement 15%, while Saudi Arabia wants to make a 20% corporate tax. This makes it easier for businesses to move from having no corporate tax to having a 9% corporate tax. The UAE has the lowest corporation tax rate among the GCC countries.

There had already been a big change in tax for businesses in the Middle East before this one. In 2018, Value Added Tax was put in place on goods and services at a rate of 5% by federal tax authority. Companies pay taxes in the United Arab Emirates, which is not a new thing. In the United Arab Emirates, businesses that work with oil and gas are taxed at a rate of 55%, while branches of foreign banks that work in the UAE are taxed at 20%. Call us now to start a business.

Even so, capital gains and dividends are tax-free in the UAE. Income tax exemptions for individuals, real estate and other investments, and intra-group transactions and restructurings are still in place, so you don’t have to worry about the changes in your business matters.

Federal Tax Authority’s Tax makes people suffer, especially corporate tax or corporate vat. Business setup consultants help you save your time and money:

New corporate tax rules in the UAE and other Gulf countries mean that people and businesses are going to be better off.

Business owners can benefit from federal tax authority’s corporate tax system because it would allow them to easily follow the laws and regulations of the country. The Business Registration & Licensing Support Center was setup to make UAE newcomers’ lives easier. You can file a single business tax return each year and save time by doing it online.

In order to lessen its reputation as a tax haven for both firms and individuals, the Gulf nation has already taken a number of efforts to do so. It implemented a 5% VAT on goods and services in 2018. Financial institutions and insurance businesses that do business outside of the country’s extensive network of free zones are already subject to a tax of up to 20% on their revenues. A distinct taxation program applies to the oil and gas industries in the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC).

Talk to our service consultants at the Business Registration & Licensing Support Center if you need help with corporate setups, visa or work permit applications or anything else related to doing business in Dubai. If you own several businesses in the United Arab Emirates, you can set up a group of them and file a single tax return for all of them. You can also pass on and deduct tax losses to other group members.

Why waiting?

Details and exemptions will follow in the months ahead. Call us if you have any queries about the new company tax. Why go through the hassle of setting up your own corporation in the United Arab Emirates when you can just deal with the Crosslink International, a top business setup and service provider in Dubai? We’re here to help you for help with the Federal Tax Authority’s new tax rules, just give us a call or send us an email. We’ll show you the ropes.

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