Dubai – February 28, 2022:

UAE’s Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi clarified that income tax is not on the table in an interview with Bloomberg.

The interview comes in the wake of the UAE’s MoF’s decision to introduce corporate tax on business profits from financial years starting on or after June 1, 2023. With a standard statutory tax rate of nine percent and a zero percent for taxable profits up to AED 375,000 to support small businesses and startups, the UAE corporate tax regime will be amongst the most competitive in the world. The minister opined that corporate tax was received positively by the country’s corporate sector as the tax will replace most of the fees companies are currently paying.

Based on the MoF’s Corporate Tax FAQs, individuals will also be subject to corporate tax when they conduct business in the UAE under a commercial license 1.e under a freelance license).