On 31 January 2022, the Ministry of Finance announced that the United Arab Emirates (UAE) will introduce a federal Corporate Tax on Business profits effective for Financial Years starting on or after 1 June 2023. The Ministry of Finance explained the rationale for the introduction of the corporate tax by explaining that a federal Corporate Tax regime is intended to help the UAE achieve its strategic ambitions and incentivize businesses to establish and expand their activities in the UAE. It will also help UAE improve its status in the trading circles around the world by shedding its tax have status. UAE’s extensive network of double tax treaties will help cement the UAE’s position as a world-leading destination for investment.
Since the corporate tax was announced, a drafting committee has been working on implementing the tax in the best possible manner in order to incorporate best practices and reduce the burden on the businesses in UAE. The Ministry of Finance intends to do this by consulting with the business community and local stakeholders and considering their contributions to further refine the UAE corporate tax regulations.
The Ministry of Finance welcomes comments on this consultation document by [19 May] 2022 using the online submission form on their website. The Ministry of Finance has made clear and concise comments focusing on aspects of the proposed corporate tax system thathelpreduce the cost and complexity of compliance and improve the understanding for bothtax managers and taxpayers. The interested parties are also encouraged to explain their comments using real-world examples and by providing stats and figures to back up their claims. The Ministry of Finance regrets that comments received after [19 May 2022] or that are submitted in any manner other than by using the prescribed online submission form will not be considered.
Link - https://www.mof.gov.ae/en/Eparticipation/Pages/EPublic.aspx