OECD rates UAE’s free zone corporate tax ‘non-harmful’

OECD rates UAE’s free zone corporate tax ‘non-harmful’

The UAE free zone corporate tax (CT) regime has been recognised as ‘non-harmful’ by the Paris-based policy forum Organisation for Economic Co-operation and Development (OECD), the Gulf state’s finance ministry said. The findings were disclosed in the results from an October 2023 meeting on harmful tax practices, the UAE state-owned Wam news agency reported. The […]The UAE free zone corporate tax (CT) regime has been recognised as ‘non-harmful’ by the Paris-based policy forum Organisation for Economic Co-operation and Development (OECD), the Gulf state’s finance ministry said.

The findings were disclosed in the results from an October 2023 meeting on harmful tax practices, the UAE state-owned Wam news agency reported.

The rating is part of the OECD’s comprehensive review of 322 taxation regimes worldwide.

According to the findings, the UAE’s free zone corporate tax regime was evaluated and confirmed to align with global initiatives to prevent tax avoidance and harmful tax practices.

“The OECD rating of ‘non-harmful’ is a testament to the UAE’s commitment to transparency, non-harmful taxation, and the implementation of best practices in tax policy,” said Mohamed Hadi Al Hussaini, minister of state for financial affairs.

The ministry remains dedicated to further refining the country’s nation’s tax framework, ensuring its economic diversification and development,