Dubai, UAE: The United Arab Emirates ranks fourth on the list of 63 economies around the world in the Tax Policy category of the World Competitiveness Yearbook 2022 Peer Group.
Published by Switzerland-based International Institute for Management Development (IMD), the World Competitiveness Yearbook assesses and ranks 63 economies around the world and bases its classification typically on four main indicators – economic performance, government efficiency, business efficiency and infrastructure.
The UAE place on the Yearbook depicts the country’s total contribution to GDP with its taxes, its stable rates of inflation, low tariffs and balanced price indexes.
Consultancy firm Al Dhaheri Jones & Clark said in a statement that it has set up a new division to cater specifically to the growing corporate tax compliance needs of the UAE businesses, given the emirate’s top ranking and its plans to implement corporate tax this year.
It added that the new division will empower businesses in the UAE with in-depth information on corporate tax highlighting applicable rates, tax planning, tax impact assessment, litigation support, corporate tax advisory and more.
As per the UAE Ministry of Finance, businesses in the UAE will have up to nine months from the end of the relevant tax period to submit their tax return and pay the federal corporate tax. The UAE issued its federal corporate tax a few weeks back that will levy a headline nine per cent rate on taxable income exceeding Dh375,000 ($102,000).
Taxable profits below the threshold will not be taxed. No corporate tax will apply on salaries or other personal income from employment — be it in the government, semi-government, or private sector, the Ministry of Finance said last week. The corporate tax will be effective for financial years starting on or after June 1, 2023.