Accounting/TAX

UAE begins corporate tax roll-out, with free zones exempted

 

FILE PHOTO: A general view of the Abu Dhabi skyline
A general view of the Abu Dhabi skyline is seen, December 15, 2009. REUTERS/Ahmed Jadallah/File Photo/File Photo

DUBAI, June 1 (Reuters) – The UAE began rolling out a 9% business tax on Thursday, with exemptions for the many free zones which power its economy, as the formerly tax-free oil producer seeks to boost non-oil revenue and remain a regional commercial hub.

The business tax follows a 5% value added tax (VAT) introduced in 2018, gradually eroding the United Arab Emirates’ tax-free status that helped it carve out a role as an international trade and tourism hub and magnet for the ultra-rich.