On 31 January 2022, the UAE Ministry of Finance (MoF) announced the introduction of The UAE Federal Corporate tax (CT). Under this announcement, corporate tax will be effective for financial years starting on or after 1 June 2023.
The UAE CT will be applied across all the Emirates and to all business and commercial activities except for the extraction of natural resources. This will continue to be subject to Emirate-level taxation.
Based on the press release and FAQs, the Corporate Tax system will follow most other countries. It is likely the UAE Corporate Tax system will be a residence-based model that taxes the worldwide profits of UAE resident businesses, and only the UAE-sourced business income of non-residents.
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