• About Us
  • Careers
  • Brand Partnerships
TFI Official Merchandise
TFI English
TFI हिन्दी
Thursday, June 8, 2023
TFIGlobal
TFIGlobal
Right Arm. Round the World. FAST.
No Result
View All Result
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
TFIGlobal
TFIGlobal
No Result
View All Result

The FATF effect: For the first time, the UAE will begin taxing its Corporates

Abhishek Srivastava by Abhishek Srivastava
February 3, 2022
in West Asia
Reading Time: 3 mins read
0
UAE, FATF, CORPORATE
302
VIEWS
Share on FacebookShare on Twitter

UAE for long has been a tax haven for companies and corporates across the globe. The absence of any kind of tax helped UAE’s metamorphic rise as the financial and economic powerhouse that it is today. But now, for a first, UAE has decided to introduce a corporate tax for companies operating in the emirate.

No more a tax haven

UAE has decided to impose a 9% federal corporate tax on profits from June 2023. The tax will be imposed on companies that are located outside UAE’s free trade zones. The companies which are located inside the sphere of trade and sans any work with the mainland will continue to enjoy various tax incentives and other advantages.

Also Read

Dubai’s Golden Ticket: Investing in Property for Long-term Returns

FATF is set to bring charges against Russia that are set to fail

Also, personal income from employment, real estate, and other investments will be exempted from corporate tax. Another exception is oil and gas companies, which are subject to their own tax schemes.

According to the UAE’s Ministry of Finance, business profits up to $102,000 will not be taxed in order to support small businesses and start-ups.

Younis Haji Al Khoori, Undersecretary of the UAE’s Ministry of Finance, said in a recent statement, “With the introduction of corporate tax, the UAE reaffirms its commitment to meeting international standards for tax transparency and preventing harmful tax practices”. He added, “Tax incentives in the UAE’s free-trade zones will remain in place”.

Also Read: 10 countries launch a campaign to unseat Erdogan the same day Turkey got grey-listed by FATF

UAE rushes to bring in the corporate tax. Why?

According to the UAE government, the introduction of the corporate tax is to make the economy more transparent, reduce financial malpractices, build a taxation system that could meet international standards. But, the world knows the real reason behind this decision.

UAE has remained, for quite some time, on the watch list of the Financial Action Task Force (FATF) for its ineffectiveness in countering money laundering. Recently, it is also faced the risk of being grey-listed by the global financial watchdog over anti-money laundering and terrorist financing failings.

If placed in the FATF’s grey list, UAE would join the countries like Haiti, Malta, the Philippines, and South Sudan, which were added to the list in June 2021.

According to some sources, the FATF is planning to add UAE into the grey list during its plenary meeting scheduled for late February this year.

It would be a highly significant decision by FATF as UAE has become a major global financial and business hub and would inevitably shatter the image of UAE’s success and its economic progress, making it less attractive for companies and businesses to rely upon. If so, UAE is bound to suffer from huge losses in investments and FDI.

Read More: The terror attack against Afghan Vice President is the final blow as FATF builds a strong case against Pakistan

The UAE’s decision of introducing the corporate tax has come just around a month before FATF’s next plenary meeting. This shows that UAE is concerned about its future hopes to convey to the FATF that they are cautious enough in implementing important and significant steps against money laundering. Through this step, UAE wants to strengthen its position and narrative against FATF’s upcoming decision and wants to ensure that the global financial watchdog refrains itself from placing UAE into its grey list.

Tags: Corporate TaxFATFUAE
ShareTweetSend
Previous Post

Read these quotes and understand the misunderstanding

Next Post

China’s ice-hockey team: “Made in Canada” and “Sponsored by IOC”

Also Read

Western media barred from covering OPEC proceedings

Western media barred from covering OPEC proceedings

June 5, 2023
UAE’s Record Gold Purchase from Russia could have De-dollarization written all over it

UAE’s Record Gold Purchase from Russia could have De-dollarization written all over it

May 29, 2023
GCC expansion: a possible Russian entry and a massive geopolitical bloc in the making

GCC expansion: a possible Russian entry and a massive geopolitical bloc in the making

May 22, 2023
As Arabs hug each other….Biden and his ilk shed a tear

As Arabs hug each other….Biden and his ilk shed a tear

May 18, 2023
Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

  • Trending
  • Comments
  • Latest
11th July: The date set by Victoria Nuland for WWIII

11th July: The date set by Victoria Nuland for WWIII

May 31, 2023
Its Official: Biden is waving white flag against Iran

Its Official: Biden is waving white flag against Iran

June 2, 2023
A military emergency could soon be imposed in Europe

A military emergency could soon be imposed in Europe

June 2, 2023
Oh Well, Germany is Planning a War with Russia (Psst… to Win Elections at Home)

Oh Well, Germany is Planning a War with Russia (Psst… to Win Elections at Home)

June 1, 2023
Putin’s Odessa Ambitions are About to Come True

Putin’s Odessa Ambitions are About to Come True

June 1, 2023
How was BRICS formed and why is it yet to achieve its true potential

How was BRICS formed and why is it yet to achieve its true potential

June 8, 2023
An Ursula vs Meloni war has broken out and Meloni seems to be winning this one

An Ursula vs Meloni war has broken out and Meloni seems to be winning this one

June 8, 2023
Macron checks NATO’s advance into the Indo Pacific and we just know why he did that

Macron checks NATO’s advance into the Indo Pacific and we just know why he did that

June 8, 2023
5 things to know about the poorest country in Europe

5 things to know about the poorest country in Europe

June 8, 2023
Is the CIA planning to execute Zelensky?

Is the CIA planning to execute Zelensky?

June 8, 2023
Youtube Twitter Facebook
TFIGlobal
  • About us
  • Contact Us
  • Terms of use
  • Privacy Policy

©2023 - TFI MEDIA PRIVATE LIMITED

No Result
View All Result
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean

©2023 - TFI MEDIA PRIVATE LIMITED

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Follow us on Twitter

and never miss an insightful take by the TFIGlobal team

Follow @tfiglobal
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. View our Privacy and Cookie Policy.