UAE: The UAE on 31st January announced the introduction of tax system into it governing strategies. This announcement came after India announced its Union Budget for the FY2022-23 which is expected to impact the trade terms between the two nations.
This decision by the Emirati’s aims to bring the country in line with many governments worldwide and contemporize its economy and acclimate to international taxation norms.
Meanwhile, foreign investors who do not hold any business activities in the estate would be free from the tax.However, it is unclear how the new 9% corporate tax on earnings will impact consumers as some businesses could raise their prices as a result.
“The UAE reaffirms its commitment to meeting international standards for tax transparency and preventing harmful tax practices,” Younis Haji Al Khoori, undersecretary of UAE ministry of finance, was quoted as saying after the ministry announced the development.
While the desert economy is still reeling under the pandemic effect, untold numbers of foreigners, who comprise around 90% of the UAE’s population, lost their jobs amid the pandemic and salaries were slashed in key industries such as tourism, real estate and the construction sector.
The UAE has recently taken steps to try and retain foreign investors, including loosening restrictions on business ownership rules and granting longer-term visas for some. It has also liberalised some of its Islamic laws around alcohol and unmarried couples, and moved to a Monday-Friday workweek