UAE Corporate Income Tax

Episode Duration:
70 minutes

Episode Background:
The United Arab Emirates (UAE) has announced the introduction of Corporate Income Tax on 31 January 2022. As a signatory to the Two Pillar package driven by the Organization for Economic Co-operation and Development (OECD), UAE has introduced the Corporate Tax (CT) in line with the Global Minimum Tax Proposal under Pillar 2.

In a Nutshell:

• It is proposed to implement Corporate Tax for the Financial Year beginning on or after 1 June 2023.
• The proposed tax rate is 9% for taxable income above 3,75,000 AED and would provide a differential tax rate for large multinationals that meet the minimum tax criteria specified under the ‘Pillar 2’ Proposal.
• These provisions would also apply to Free Zone Companies having business with Mainland UAE.
• Registration and compliance requirements for companies in the Free Zone.

With the above development, businesses in UAE would be required to align their policies, tax positions, and structure as per the evolving tax landscape in the region. 

What shall the episode cover?
Against this backdrop, Taxsutra's GCC Tax & Regulatory Updates Platform "Quasar" in association with Nexdigm is delighted to present to you a special episode on “UAE Corporate Income Tax”. In the first half of the episode, Mr. Maulik Doshi (Deputy Managing Director - Transfer Pricing and International Tax, Nexdigm) & Mr. Nishit Parikh (Partner - Direct Taxation, Sudit K Parekh & Co. LLP) have set the context, delved into the law and discussed its likely impact on businesses, especially Indian corporates operating in UAE.

In the second half of the episode, Mr. Doshi has engaged in a riveting conversation with Industry Experts, viz. Mr. Prabodh Modak (General Manager, Tata Communications) & Mr. Naresh Somani  - (Head-Taxation, Marico India) have shared their valuable insights on how they perceive the impact of the aforesaid law and the way forward for the industry.