The United Arab Emirates announced Monday it is introducing for the first time a federal corporate tax on business earnings
Dubai: The United Arab Emirates announced Monday it is introducing for the first time a federal corporate tax on business earnings. It’s the latest measure to bring the country in line with many governments worldwide but one that also chips away at its competitive advantage. The UAE home to Abu Dhabi, Dubai and five other emirates has been steadily introducing new taxes as it seeks to diversify revenue from its mainstay of oil. It is unclear how the new 9% corporate tax on earnings will impact consumers as some businesses could raise their prices as a result. Businesses across various sectors in the UAE are still reeling from the effects of the coronavirus pandemic. Untold numbers of foreigners, who comprise around 90% of the UAE’s population, lost their jobs amid the pandemic and salaries were slashed in key industries such as tourism, real estate and the construction sector.
