29 April 2022 -On 31 January 2022, the Ministry of Finance (MoF) of the United Arab Emirates (UAE) announced the introduction of a federal Corporate Tax (CT) on business profits effective for financial years starting on or after 1 June 2023. The introduction of CT is intended to help the UAE achieve its strategic objectives and accelerate its development and transformation. The certainty of a competitive regime, together with the UAE’s extensive network of double tax treaties, will cement the UAE’s position as a leading hub for businesses and investments.
Since the announcement in January 2022, work has continued on the design and implementation of the CT regime to ensure that it incorporates best practices globally and minimizes the compliance burden for UAE businesses. Recognizing the importance of consultation with the business community and other interested stakeholders, the MoF has launched a public consultation process ahead of the official release of the relevant legislation. Input received will be carefully considered and will assist the MoF in further refining and implementing the proposed CT regulations. You can refer to the public consultation document on the following link.
As part of the public consultation, the MoF has released a public consultation document which contains information on the proposed UAE CT regime. We have summarized the key features in the below table:
You are welcome to contact us at cituae@deloitte.com with any queries or feedback you may have.