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A
ministry statement carried by state news agency WAM said the tax
will be levied on all corporations and commercial activities in
the country, except for the "extraction of natural resources"
which will remain subject to taxation at the emirate level.
The move comes as the oil producer continues to diversify
sources of revenue away from oil revenue.
In 2018, the UAE introduced value added tax on most goods and
services at a standard rate of 5%.
The ministry said the new regime implies a standard statutory
tax rate of 9%, as well as a 0% rate for taxable profits up to
375,000 dirhams ($102,107.50) in order to support small
businesses and startups.
Businesses in the UAE, a regional financial hub, are exempted
from paying taxes on capital gains and dividends received from
shareholdings, it said.
The new programme left intact the exemption for individuals from
income tax, capital gains tax on real estate and other
investments, and other earnings that do not come from a
business.
The UAE corporate tax regime will continue to honour the
corporate tax incentives currently being offered to free zone
businesses that comply with all regulatory requirements and that
do not conduct business with mainland UAE, the ministry said.
($1 = 3.6726 UAE dirham)
(Reporting by Moataz Mohamed and Hadeel Al Sayegh; editing by
Mark Heinrich)
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