[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]The United Arab Emirates (UAE) is about to undergo a major transition from tax-free status to a 9% corporate tax. The Federal Tax Authority’s (FTA) decision will take effect on June 1, 2023.
Employees in the UAE who receive a single income stream through salary payments need not worry because their earnings are tax-free.
Registration for corporate tax began on May 15. According to the FTA, public joint stock companies and private companies can register using the EmaraTax platform, while free zones and other companies will have to wait.
The authority also stated that early registration will allow businesses to comply with legal requirements.
Also Read: IHC issues contempt notice to IGP Islamabad on fourth arrest of PTI’s Shireen Mazari
Failure to register for corporate tax or submit accounts will result in severe financial penalties. As a result, it is not recommended to put off these obligations.
Tax Exemption
The Ministry of Finance (MoF) released a list of businesses last month that are exempt from registering for corporate tax under the Taxation of Corporations and Businesses Act.
Government organisations, government-controlled entities, and extractive/non-extractive natural resource businesses that meet the criteria outlined in the corporate tax law were included on the list.
Individuals who do not live in the UAE and do not have a permanent organisation there are not required to register for corporate tax if their sole source of income is in the UAE.[/vc_column_text][/vc_column][/vc_row]
