Key impacts of corporate tax on UAE businesses

Key impacts of corporate tax on UAE businesses

Corporatye tax would be the short-term liability of the businesses, which would adversely affect their working capital. Businesses would be required to assess the gap in the working capital, and they would bridge the gap

It’s highly likely that shareholders would try to maintain their share of profits, and they would pass on the impact of CT to the end-users in the form of increasing sales prices which would make things a little expensive for the end-users and have an adverse impact on their purchasing power. — File photo

By Mahar Afzal/ Compliance Corner Published: Sun 13 Feb 2022, 2:09 PM

We all know that corporate tax (CT) would be effective from the financial years starting on or after June 01, 2023. All stakeholders have almost one and half years, but CT has become the talk of the town, and everyone is discussing and trying to figure out the impacts of CT on the businesses, individuals, government, and overall economy. In this article, we have assessed and analysed the impacts of CT on the key stakeholders.

Every registered business would be liable to register for CT and annually, they would be required to pay nine per cent of their adjusted taxable profits over and