Good Morning
This month there’s only one topic to talk about…tax!
Effective June 1st, the UAE introduced its new Corporate Income Tax (CIT) regime which applies across all emirates and free zones in the country.
The easy part is that the rate is set at 9% for companies with profits in excess of AED 375,000 (approx. GBP 80,000) however beyond this there are specifics that need further understanding and investigation for any business operating in the UAE.
Here we bring you some of the main headline issues including:
– A general overview on CIT
– CIT implications for free zone companies
– Issues for UK companies to be aware of
We also remind you about VAT in the UAE which was introduced in January 2018 and has now become an accepted part of the fiscal landscape.
As with all things in this area, we strongly advocate that you engage professional advice to make sure you fully understand the implications, how to operate in a compliant way and also so you are not exposed to tax in the UK or UAE that you are legally & fairly able to avoid. If you’d like our help to introduce you to tax consultants, please let us know.
And finally, next week the Muslim world celebrates the Eid Al Adha festival. In line with the UAE private sector, the BCB office will be closed from Tuesday 27th June until Monday 3rd July. We wish you all Eid Mubarak.
Regards
Joe
IV: Understanding VAT in the UAE
In 2018, the UAE implemented a VAT system, marking a significant shift in its taxation landscape. Learn more on some of the key details about VAT in the UAE.
V(a): Corporate Income Tax in the UAE
The introduction of Corporate Income Tax is intended to help the UAE achieve its strategic objectives and accelerate its development and transformation. Find out what this means for businesses.
V(b): UAE Corporate Income Tax – Companies and SMEs operating in free zones
The UAE is home to more than 40 free zones, all offering a business environment where goods & services can be traded. Learn more on how CIT applies to free zones in the UAE.
V(c): Corporate Income Tax in the UAE: Impact on UK Businesses
To prevent double taxation between the UK and the UAE, both countries have established a Double Taxation Treaty. Find out how this impacts UK businesses in the UAE.