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Thursday, November 30, 2023

UAE ranks 4th globally in Tax Policy category – Experts

The World Competitiveness Yearbook 2022 Peer Group rankings have positioned the UAE as 4th in Tax Policy category.

The World Competitiveness Yearbook 2022 Peer Group rankings have positioned the UAE as 4th in Tax Policy category, according to Dubai-based consultancy Al Dhaheri Jones & Clark.

Published by Switzerland-based International Institute for Management Development (IMD), the 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’s 4th place in Tax Policy denotes the country’s total contribution to GDP with its taxes, its stable rates of inflation, low tariffs and balanced price indexes, stated the comsultancy.

In connection with this global ranking and with the UAE all set to implement corporate tax this year, Al Dhaheri Jones & Clark have set up a new division to cater specifically to the growing corporate tax compliance needs of UAE businesses.

“The UAE has been a hub for international trade and business for a long time, and the introduction of Corporate Tax has only paved way for the country to boost its GDP growth as well as streamline the business operations,” said a spokesman for Al Dhaheri Jones & Clark.

The Dubai-based consultancy renders key services as auditors, financial and accounting experts as well as advisors and consultants across enterprises and SMEs in the UAE. 

“The UAE’s corporate tax regime is amongst the most competitive in the world, making it one of the most preferred destinations for businesses to operate here,” he stated.

As a result, Al Dhaheri Jones & Clark has launched a new division to help companies in the country to understand the implications of these new regulations, as well as streamline compliance.

The UAE issued its federal corporate tax a few weeks back that will levy a headline 9 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.

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, said the spokesman. 

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,” he added.

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