Corporate tax to consolidate UAE’s position as a leading global business hub

Corporate tax to consolidate UAE’s position as a leading global business hub

The UAE’s 9% corporate tax rate positions the country as a highly competitive tax regime, globally and regionally

The UAE is currently aligning with international policies and guidelines and changing policies which will help keeps its economy in a profitable bracket going forward. — File photo

Published: Wed 2 Feb 2022, 5:04 PM

The UAE’s latest move to diversify its revenue sources will have a positive impact on economy in general and real estate sector in particular besides aligning the country's corporate sector with best international practices for tax transparency, experts and top executives say.

Shabana Begum, partner and head of transfer pricing at KPMG Lower Gulf, said the corporate tax announcement by the Ministry of Finance will undoubtedly set in motion some positive changes for the business landscape that will align the UAE with international standards for tax transparency and aim to prevent harmful tax practices.

“The corporate tax (CT) rate of nine per cent announced is highly competitive both within the GCC and globally and will consolidate the UAE’s position as a leading global hub for business and investment, accelerating the nation’s development and transformation,” Shabana said.

“The new corporate tax regime will be effective for financial years starting on, or after, June 1,