April 29, 2022
UAE Ministry of Finance releases consultation document on corporate tax introduction
On 28 April 2022, the United Arab Emirates (UAE) Ministry of Finance (MOF) released a public consultation document on the planned introduction of corporate tax (CT) in the UAE. This follows the 31 January 2022 announcement by the MOF confirming that the UAE will introduce federal CT for financial years starting on or after 1 June 2023.
The public consultation document contains the main features of the planned CT regime as well as the principles that were applied in the design of the CT regime. Interested parties are invited to comment on the elements covered in the document, as well as on areas that are not covered by the document.
This is the first formal public consultation process initiated by the UAE Government in respect of the design and implementation of UAE tax legislation. The MOF acknowledges that having an effective consultation with the public, particularly the business community, is essential in shaping a CT regime that is compatible with the UAE’s business environment, by having visibility on how the proposed CT regime is perceived by the relevant stakeholders or interested parties.
The public consultation document indicates that it is released to obtain input from interested parties and that it does not reflect the final view of the UAE Government. Moreover, the public consultation document states that it does not exhaustively cover all elements of the planned UAE CT regime.
The MOF invites comments on the public consultation document to be submitted as per the prescribed online submission by 19 May 2022.
For additional information with respect to this Alert, please contact the following:
EY Consulting LLC, Dubai
Ernst & Young LLP (United States), Middle East Tax Desk, New York