The UAE has started tax registration for specific categories of companies conducting in the country, which is about to be implemented this year.
The UAE regulator stated on Sunday that, The chosen companies would receive an invitation from the Federal Tax Authority to register using the Emara Tax platform for digital services.
The FTA (Federal Tax Authority) will process the registration phase for other businesses and companies, which is available until May.
The UAE introduced the federal corporate tax last January with a standard statutory rate of 9 percent, which will impact businesses whose financial year begins on or after June 1.
The company issued the federal corporate tax law last year, bringing companies’ income exceeding Dh 375,000 within the taxable bracket.
Taxable profits below the point will be subjected to a 0 percent rate.
The Ministry Of Finance said that No corporate tax would apply to salaries and personal income from employment -whether in the government, semi-government bodies, or the private sector.
The FTA also stated on Sunday, “When registration opens, priority will be given to the companies and businesses with a financial year beginning on June 1, 2023. The FTA will ensure ample time for companies and businesses applying for the registration and meet their legal obligations”.
According to the Tax Foundation in Washington DC, the average top corporate tax among the EU countries is percent cent, while it stands at 23.4 percent in ECD countries and 69 percent in the G7.
Khalid Ali Al Bustani, Director General of FTA, stated, “Since the announcement of corporate tax in the UAE, the FTA has strengthened its efforts, in amalgamation with the competent authorities, for developing procedures to implement it in congruence with the highest standards.”
“The authority priorities support all business sectors to comply with the procedures and regulations through flexible mechanisms that align with international best practices.”
Younis Al Khouri, the undersecretary of the Ministry of Finance, said to the National that the UAE also plans to keep the rate of corporate tax unchanged for the foreseeable future
He also noted, “The rate is agreed and fixed at 9 percent… as long as the (corporate tax) law is there. “
” If there is any review, we will announce it later, but as of now, no change in the rate. “
Conclusion
The report mentioned above explains the corporate tax imposed on UAE companies. Levy will come into effect for the companies whose financial year starts from or after June 1.
