UAE corporate tax: Free zone based businesses with mainland operations to come under tax regime

UAE corporate tax: Free zone based businesses with mainland operations to come under tax regime

Dubai: All businesses in the UAE will now come under the corporate tax umbrella. The UAE authorities, meanwhile, reaffirm that there be no tax on individuals. As regards free zones, the 9 per cent tax will apply to those businesses within free zones that derive commercial benefits from the mainland. "The incentives currently being offered to free zone businesses will be honoured for businesses that comply with all regulatory requirements - and that do not conduct business with mainland UAE," said Pankaj Jain, Managing Director at AskPankaj Tax Consultants. "The introduction of corporate tax (CT) for the first time in the UAE is historical - a paradigm shift - for the country and the business community. " For public listed companies – many of whom are recording bumper 2021 results – the new taxes will require them to rework their dividend strategies and what they set aside for future capital expenditures. “Corporate tax will be payable on the profits of UAE businesses as reported in their financial statements prepared in accordance with internationally acceptable accounting standards,” said Vijay Valecha, Chief Investment Officer at Century Financial. “There will be minimal room for exceptions and adjustments. "The corporate tax will apply to