UAE NO TAX FREE

The unique selling point of theUAE was its tax-free status the united arab emirates

is losing that. 
Now starting june 2023 corporates in the UAE will be asked to pay a federal tax will this force businesses to move. 
UAE longer remain attractive to entrepreneurs and why is the ua suddenly introducing attacks after all these years our next report has the answers

it's hard to get this skyline wrong

this is the united arab emirates

home to ultra rich people

ultra fast cars

ultra tall towers ultra luxurious

airlines

and the coveted business hubs


there are at least 3

209 international companies in the uae

most of them are based in dubai

what makes this land a favorable

business destination

one taxes

you don't need to pay any

two ownership

foreign companies do not need emirati

shareholding

and three location

uae is halfway between europe and asia

it's a magic formula for minting money

but soon companies will be forced to

share their profits

uae has introduced its first ever

corporate tax businesses will be taxed 9

this will apply to profits exceeding 375

000 dirhams

which is around 102 000

corporates whose profits are below 102

000

will not need to pay tax

this is a federal corporate tax meaning

it does not apply to individuals

just businesses they will have to start

paying tax starting june 2023

this is the first time the uae is taxing

businesses directly one can't help but

ask why

why is the uae bent on losing its usp

maybe to stay in the business

we did some digging

here's what we think paved the way for

this tax regime

one the need to be a team player

countries worldwide want big corporates

to pay a minimum of 15 tax the proposal

was put forward by the oecd and 136

countries including the uae signed on it

in 2021

this corporate tax helps uae do its bit

in countering big tech's tax evasion

what it also does is save the uae from

grey listing

point number two may come as a shock to

some of you remember fatf the financial

action task force that's great listed

pakistan it is now discussing whether or

not to put the uae in the same category

fatf reportedly believes the uae has not

done enough to combat money laundering

if gray listed the uae's investments

could take a hit

taxing businesses on the other hand

helps it build a case before the

financial watchdog

point number three corporate tax also

helps the uae diversify its economy ever

since the pandemic struck oil-rich

countries began pivoting away from

over-reliance on petroleum

saudi arabia for example invested in an

indian retail chain

the uae 2 is exploring different avenues

of income

in 2018 the uae introduced vat or value

added tax on most goods and services

currently branches of foreign banks need

to pay 20

tax as do certain companies in the

energy sector

what changes now is that other

businesses too

come under the tax bracket

there is a possible fallout of this move

the uae may lose business especially to

saudi arabia riad has been offering

incentive to international companies

it wants businesses to shift their

offices to be fair the uae still has an

edge

for starters most other gulf countries

impose corporate tax on mncs too in

saudi arabia it is 20

in oman it is 15

and 10

in qatar the uae is proposing 9

what about tax havens outside the gulf

montenegro's tax rate is eight percent

gibraltar 10

hong kong's taxes start at 8.5

and go up to 16.5 percent

the uae's finance ministry has said that

the country's corporate tax regime will

be amongst the most competitive in the

world it's not like upsetting businesses

is an option before the uae