The United Arab Emirates (“UAE”) decided on October 8, 2021, to apply the OECD’s Two-Pillar strategy. UAE agreed to implement the OECD’s Two-Pillar approach to reform it’s to reforming its International Tax Framework, as well as a minimum corporate tax rate beginning in 2023.
The Ministry of Finance announced on January 31, 2022, the implementation of a Corporate Tax system on corporate profits for financial years beginning on or after 1 June 2023.
Corporate tax (CT) is a type of direct tax levied on a corporation’s or other business’s net income or profit. Businesses operating in the UAE will be obliged to examine the impact of the new restrictions on their operations and comply with them.
Our team of specialists at MARS can assist, you with suitable preparation in accordance with local tax requirements.