In the 2022 World Competitiveness Yearbook peer group rankings, the UAE ranks fourth in the tax policy category, according to Dubai-based consultancy Al Dhaheri Jones & Clark.
Published by the Switzerland-based International Institute for Management Development (IMD), the yearbook evaluates and ranks 63 economies around the world, usually based on four main indicators – economic performance, government efficiency, business efficiency and infrastructure.
The consultancy said the UAE ranks fourth in tax policy, which indicates the country’s total contribution to GDP through taxes, stable inflation, low tariffs and a balanced price index.
In light of this global ranking and the fact that the UAE will implement corporate tax this year, Al Dhaheri Jones & Clark has launched a new division dedicated to the growing corporate tax compliance needs of UAE businesses.
“The UAE has long been a hub for international trade and commerce, and the introduction of the corporate tax has only paved the way for the country to boost GDP growth and streamline business operations,” said Al Dhaheri spokesman Jones and Clark.
The Dubai-based consultancy provides vital services such as auditors, financial and accounting experts, as well as consultants and advisors to businesses and SMEs in the UAE.
“The UAE’s corporate tax system is among the most competitive in the world, making it one of the top destinations for companies to do business here,” he said.
As a result, Al Dhaheri Jones & Clark has launched a new unit to help companies in the country understand the impact of these new regulations and simplify compliance.
A few weeks ago, the UAE released its federal corporate tax, which will impose an overall rate of 9 percent on taxable income over AED375,000 (US$102,000).
Taxable profits below the threshold will not be taxed. The Treasury said last week that there is no corporate tax on wages or other personal employment income, whether in the government, semi-government or private sector. Corporation tax will come into effect for financial years beginning on or after 1 June.
According to the UAE Ministry of Finance, businesses in the UAE will have up to nine months after the end of the relevant tax period to file their tax returns and pay federal corporate tax, the spokesperson said.
The new unit will provide businesses in the UAE with in-depth information on corporate taxation, highlighting applicable tax rates, tax planning, tax impact assessments, litigation support, corporate tax advice, and more,” he added.trade arab news agency