The United Arab Emirates will introduce a corporate tax from mid-2023, the finance ministry said Monday, as the country seeks to diversify its income.
The Gulf financial center will tax business profits over 375,000 AED ($102,000) at 9.0 percent from June next year, a statement said.
The announcement is the latest significant move by the UAE, which switched from Friday-Saturday weekends to Saturdays and Sundays this year to align closer with global markets.
"The UAE corporate tax regime will be amongst the most competitive in the world," said a statement carried by the official WAM news agency. Nine percent is at the lower end of corporate taxes worldwide.
There are no plans to introduce personal income tax or capital gains tax from real estate or other investments, the ministry said.
The UAE is diversifying to reduce its reliance on crude.
"With the introduction of corporate tax, the UAE reaffirms its commitment to meeting international standards for tax transparency and preventing harmful tax practices," Younis Haji Al Khoori, Undersecretary of the Ministry of Finance, said in the statement.
Tax incentives in the UAE's free-trade zones will remain in place, it added.
