UAE BEGINS CORPORATE TAX ROLL-OUT

The UAE began rolling out a 9% business tax on June 1st with exemptions for the many free zones which power its economy, as the formerly tax-free oil producer seeks to boost non-oil revenue.

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

Ministry of Finance said qualifying entities in the UAE's more than 30 free zones - which export tens of billions of dollars of goods to neighbouring states - will be subject to a 0% rate, even when dealing with the mainland on certain strategic activities such as manufacturing, goods processing and logistics services.