Preparing for Corporate Tax in the UAE has been saved
Preparing for Corporate Tax in the UAE
On 31 January 2022, the Ministry of Finance (MoF) announced that the United Arab Emirates (UAE) will introduce a federal Corporate Tax (CT) on business profits that will be effective for financial years starting on or after 1 June 2023.
Whilst the law has not yet been issued, we have conducted a client survey in order to gauge businesses’ reactions to the announcement of the introduction of CT within the UAE marketplace, as well as understand the steps businesses have already taken to get ready for the introduction of the new tax. This document summarizes the results of this survey.
Businesses have 16 to 22 months to prepare and therefore, it is important to consider that this a marathon and not a sprint. There is a great deal to be done for every business to be able to achieve day one UAE CT compliance. We hope these results provide some interesting food for thought on the commencement of your implementation journey.