The UAE's Minister of State for Foreign Trade, Thani bin Ahmed Al Zeyoudi, said income tax is not on the agenda. The minister told Bloomberg TV that, for now, the UAE will not implement an income tax.
Thani Al Zeyoudi told Bloomberg that the issue is not being discussed at the moment.
According to the UAE Ministry of Finance, the introduction of a corporate tax for the financial years beginning on or after June 1, 2023 was announced on January 31. The UAE corporate tax regime will be among the most competitive in the world with a standard corporate tax rate of nine per cent on taxable profits up to Dh375,000 and zero per cent on profits above that limit.
Corporate tax will replace many of the fees companies now pay, so the minister said it was welcomed by the country's corporate sector.
Corporate tax applies to individuals who conduct business in the UAE under a commercial license (e.g., as independent contractors).
The UAE had previously introduced a five percent value-added tax (VAT) in 2018 as part of the GCC framework.
