Dubai Chamber of Commerce, one of the three chambers operating under Dubai Chambers, has organised recently a Corporate Tax Workshop, designed to help participants navigate the new regime, with expert advice from senior members of corporate tax and legal teams at PwC Middle East.
After issuing the UAE issued Federal Decree-Law No. 47 of 2022 on Taxation of Corporations and Businesses (the Corporate Tax Law), businesses will become subject to the UAE Corporate Tax from the beginning of their first financial year that starts on or after 1st June 2023.
Jehad Kazim, Vice President, Legal Services, Dubai Chamber of Commerce, said,
“We work to help the business community navigate the UAE business landscape with ease and understanding. Such a major change as introducing corporate tax needs to be thoroughly explained, and we hosted this workshop to help moderate any concerns and queries of the participants.”
“As an organisation wholly driven by our members’ needs, we strive to deliver the latest guidance and awareness on relevant legal issues to help them grow and achieve their goals. Compliance with the corporate tax regime and meeting legal obligations under UAE laws is critical to ensuring we maintain a healthy business environment for our members in Dubai. As a rapidly expanding and maturing economy, our new tax law is being widely heralded as a milestone in building an integrated tax regime in support of the UAE’s strategic objectives,”
she added.
Charles Collett, UAE Corporate Tax Partner, PwC Middle East, stated,
“We are delighted to be part of this timely event with the Dubai Chamber of Commerce on UAE Corporate Tax. The introduction of this new law strengthens the UAE’s position as a global business hub and leading financial centre.”
He added,
“Introducing a federal Corporate Tax regime reaffirms the UAE’s commitment to meeting international standards for tax transparency, and the 9% statutory rate is one of the most attractive headline rates amongst developed economies. While the new tax regime is business friendly, businesses need to plan early to ensure a smooth transition into the new regime.”
The workshop, attended by 152 participants, included an overview and key highlights of the new corporate tax law, tips on corporate tax preparation and compliance guidelines. PwC experts, during a panel session, discussed the impact of the law on businesses and industries in the UAE, and described exclusions and exemptions.
Corporate tax is a significant step in the UAE’s drive to modernise its tax system and accelerate economic diversification. At national level, the new tax will deliver a predictable government revenue stream – which can be reinvested into the continued development of the country.
Tax revenues will be used to build infrastructure, support vital projects and help fund UAE work on the UN’s Sustainable Development Goals.
The new corporate tax – designed with global best practice in mind – will be collected at a standard rate of 9 percent for taxable profits exceeding AED 375,000, and a 0 percent rate for taxable profits up to and including that threshold. The threshold was set in support of the large number of small to medium enterprises – often called the backbone of the UAE economy – many of which are members of Dubai Chambers.
That 9 percent standard rate puts the UAE corporate tax regime among the most competitive in the world and strengthens the nation’s position as a global business and financial hub.
News Source: Emirates News Agency