UAE’s corporate tax regime to be the most competitive in the world

UAE’s corporate tax regime to be the most competitive in the world

The UAE is introducing a competitive corporate tax regime (CT regime) effective for year end starting on or after June 1, 2023. The CT regime is based on international best practices to meet its commitment to adopt international standards for tax transparency and preventing harmful tax practices. In addition, it will provide the basis to implement the global minimum effective tax rate as proposed under “Pillar Two” of the OECD BEPS project. The scope of the CT regime is wide and includes all businesses across all Emirates with an exception for businesses involved in the extraction of natural resources which are subject to Emirate-level taxation. Taxable persons include legal entities and natural persons. This was revealed by Arslan Mushtaq, Partner Tax at athGADLANG, during an exclusive interview with Gulf Today. “The UAE is introducing a CT regime with 9% which is the lowest in the GCC when compared to Saudi Arabia at 20% , Oman at 15%, Kuwait at 15%, and Qatar at 10%. The CT tax rate will be 0% for Dhs 0 - 375,000 and 9% on adjusted accounting net profits,” Mushtaq added. He mentioned that the 0% CT rate will be a significant relief for start-ups and