UAE to introduce 9% corporate tax on business profits from June 1, 2023 (FZCO REMAINS 0%)

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Bill D

Silver Member
A few more analyzes came out : "They further said individuals will still not be subject to tax on their incomes from employment, real estate, equity investments or other personal income unrelated to a UAE trade or business. The tax also won’t be applied to foreign investors who don’t conduct business in the country."


" Individuals are considered ‘resident’ only if he or she conducts business activities in the UAE. A Cabinet Decision will be subsequently issued for specifying the ‘business activities’ in this regard."

We are at the few months of the introduction but still do not know if trading regularly your own assets (actively) is within the scope of the CT, does a lawyer has a better idea ?
 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member

On UAE Corporate Tax, free zone businesses await final word on 'qualifying income'​




----- quote start

Dubai: With registrations having opened for UAE’s corporate tax compliance, free zone based businesses and their owners are awaiting clarification on ’qualifying income’ for ‘free zone persons’.

The Federal Decree Law stipulates free zone persons could benefit from a 0 per cent UAE Corporate Tax on the qualifying income. “The qualifying income is to be defined in a separate Cabinet decision,” said Raju Menon, Chairman and Managing Director at the audit consultancy Kreston Menon.

Based on available guidance from the UAE Ministry of Finance, the qualifying income ‘should include offshore as well as onshore sources of income of free zone persons subject to strict conditions,” said Menon. “Hence, there should be detailed guidance forthcoming on this aspect.”
Under the UAE CT Law, free zone persons without an onshore base can transact with companies operating on the UAE mainland and benefit from 0 percent tax rate in scenarios to be specified. Such income could include 'passive income'.

The countdown has started on the process that will eventually lead to businesses in the UAE coming under a 9 per cent corporate tax regime from mid-2023. The tax rate, announced last year, ensures the UAE has one of the lowest CT regimes in the world, thus providing more incentives for businesses based here and those wanting to come in and launch.

-----quote end
 

Moonlighter

New member
Laws to comply with international standards does not mean they will be enforced. UAE won't establish a Gestapo style tax authority to scare away wealthy expats. Their goal is to get rid of the FATF grey list.

One can draw comparisons to the laws to protect low income labour and prevent money laundering. Well enforced laws ;)
 

Fred

Dubai Expat
Mentor Group Gold
Elite Member
Commercial Service
Entrepreneur
In addition to complying with the OECD obligations they signed up to ;).
It's indeed the OECD they are talking about internal and the biggest goal is not to be another Cayman Islands - 2 weeks ago the FTA did invite to the Marina and made some points pretty much clear.

One of the points they made pretty clear is that they don't want your money - that's enough information someone requires to do the math and to understand that they don't start 01.06 to put you in jail like our beloved "Finanzamt" in Germany for example.
 

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