DUBAI, 24th February, 2023 (WAM) — The Dubai Chamber, one of three chambers under the Dubai Chamber umbrella, recently organized a corporate tax seminar aimed at helping participants navigate the new regime, and heard from senior members of the Dubai Chamber Expert advice from PwC Middle East’s corporate tax and legal teams.
After the UAE issued Federal Decree No. 47 of 2022 (Corporate Tax Law) on corporate and corporate taxation, businesses will start paying UAE corporate tax for their first financial year commencing on or after 1 June 2023.
Jehad Kazim, Vice President Legal Services, Dubai Chamber of Commerce, said: “We are committed to helping the business community navigate the UAE business environment with ease and understanding. A major change such as the introduction of corporate tax needs to be thoroughly explained and we organized This workshop was organized to help assuage any concerns and doubts of the attendees.”
“As an organization driven entirely by the needs of our members, we strive to provide up-to-date guidance and awareness on relevant legal issues to help them grow and achieve their goals. Complying with the corporate tax regime and fulfilling legal obligations under UAE law are essential to ensure We maintain a healthy business environment for our members in Dubai. As a rapidly growing and mature economy, our new tax law is widely regarded as a milestone in establishing a comprehensive tax regime to support the UAE’s strategic objectives,” she added.
Charles Colette, UAE Corporate Tax Partner, PwC Middle East, said: “We are delighted to be participating with the Dubai Chamber of Commerce at this timely event on UAE corporate tax. The introduction of this new law strengthens the UAE as a global business hub and a leading financial central position.”
He added: “The introduction of the federal corporate tax regime reaffirms the UAE’s commitment to meeting international standards for tax transparency, while the statutory tax rate of 9 per cent is one of the most attractive key tax rates among advanced economies. While the new tax regime is beneficial for businesses, But businesses need to plan early to ensure a smooth transition to the new tax regime.”
The seminar for 152 attendees included an overview and key highlights of the new corporate tax law, corporate tax preparation tips and compliance guidelines. During the panel session, PwC experts discussed the law’s impact on UAE businesses and industries, and described exclusions and exemptions.
Corporate tax is an important step in the UAE’s drive to modernize its tax regime and accelerate economic diversification. At the national level, the new taxes will provide a predictable stream of government revenue – which can be reinvested in the country’s continued development.
Taxes will be used to build infrastructure, support vital projects and help fund the UAE’s work to achieve the United Nations’ Sustainable Development Goals.
Designed with global best practice in mind, the new corporate tax will be levied at the standard rate of 9% on taxable profits above AED 375,000 and 0% on taxable profits up to and including this threshold. The threshold is set to support the large number of small and medium-sized enterprises – often referred to as the backbone of the UAE economy – many of which are members of the Dubai Chamber of Commerce.
The standard tax rate of 9% makes the UAE’s corporate tax system one of the most competitive in the world and reinforces the country’s position as a global center for business and finance.