Recently, the UAE announced the imposition of a federal corporate tax for the first time in a major change. Meanwhile, there were reports that the UAE may make changes in some taxes. But the UAE minister has said that there will be no income tax.
United Arab Emirates (UAE) is included in the list of countries in the world where people do not have to pay income tax. There were reports in the middle that the UAE may make changes in some taxes. But the UAE’s Minister of State for Foreign Trade, Dr. Thani Al Zeyoudi has said that there will be no income tax for the time being.
Income tax will not be levied in UAE
According to a report in Gulfnews, during an interview, Zayaudi spoke about not levying income tax. He said that ‘the plan to levy income tax is not on the table yet.’ Let us tell you that the UAE said earlier this year that it will levy a 9 percent corporate tax starting from 2023. Because the UAE wants to keep itself with the new international standards.
Businessmen are accepting corporate tax
The minister said that the UAE’s new corporate tax has been accepted by the businessmen in a positive way. According to Al Zayoudi, the new levy is going to replace the extra taxes that companies will now have to pay. The Gulf country has already taken several steps to tarnish its reputation as a tax haven for businessmen and others.
Corporate tax will be levied for the first time
It is worth noting that recently the UAE has announced the imposition of federal corporate tax for the first time in a major change. This arrangement will come into effect from the middle of next year and with this the UAE will also become one of the countries to tax the income from business. Till now there was no corporate tax in UAE. In the next few weeks, information on how the corporate tax will be levied by the Finance Ministry can be found.
VAT was imposed in the year 2018
Let us tell you that in the year 2018, the UAE had fixed a 5% tax on most goods and services to increase revenue. Then VAT was levied on food, clothing, petrol, phone, water and electricity bills as well as bookings in hotels. Along with this, a separate tax is also imposed on the oil and gas sector of OPEC’s third largest producer.