Reporting Update On the 24th of February 2023, the UAE Federal Tax Authority (FTA) published VAT Public Clarification VATP033, which highlights amendments to VAT reporting across the United Arab Emirates. The amendment is relevant to those in the E-commerce sector including a broad range of concepts such as robotic devices, stores in the metaverse, smart kiosks and so on.
The United Arab Emirates Ministry of Finance recently announced the long-awaited Corporate Tax Law, set to take effect from the beginning of the financial year, June 1 2023.
The UAE’s new standard corporate tax rate of 9% is reportedly the lowest rate within the GCC region, beneath Qatar and Oman’s rates of 10% and 15% corporate income tax respectively.
The Corporate Tax will only be levied on taxable income exceeding AED 375,000. Incomes below this threshold will be subject to 0% corporate tax.
The objective of this tax is to aid the UAE in the acceleration of its economic development and transformation. It will also allow the country to meet international tax standards. Furthermore, the nation will solidify its position as a leading jurisdiction, centre for global investment and business hub.