The final Law Update of 2022 is here, and it’s packed full of articles. The double edition features two focus areas, first is a spotlight on Energy and Resources and second we feature a collection of articles on Transport and Logistics. The developments occurring in these sectors in the MENA region are unprecedented and our lawyers cover vast themes for you.
The Energy and Resources focus features topics such as diversifying energy resources, solar PV, mining in the Middle East, renewable energy and green hydrogen. From a transport perspective, we draw attention to the Bahrain metro project, discuss the challenges and remedies associated with the repossession of an aircraft, and there is advice on what to consider should a party vary the terms of a shipping contract.
This edition navigates you through updates from across jurisdictions such as, Oman, Jordan, Saudi Arabia, Egypt, Iraq, Qatar, and the UAE. Each article is timely and provides insights into legal issues and cases that are affecting these sectors across the region.Read the full edition
On 31 January 2022 the UAE (“UAE”) Ministry of Finance (“MOF”) announced that the UAE will implement a Federal-level corporate tax (“CT”) for financial periods starting on or from 1 June 2023.
The introduction of CT in the UAE follows the proposal of a global minimum effective tax rate of 15% in 2023 under Pillar Two of the Organization for Economic Cooperation and Development’s (“OECD”) Based Erosion and Profit Shifting (BEPS) project and is in line with the UAE’s commitment to meet international standards for tax transparency and preventing harmful tax practices.
At the Emirates level, the UAE already has limited corporate taxes in place (which were not enforced in practice, except for upstream oil and gas companies) and specific taxes on branches of foreign banks. However, the introduction of a Federal-level CT is a major development in the country’s tax landscape that will affect most UAE businesses.
The UAE’s CT regime will incorporate best practices globally. The key features of the CT regime will be as follows:
The taxable income will be the accounting net profit of the business (which is based on amounts reported in financial statements prepared under internationally acceptable accounting standards), after making certain adjustments.
The introduction of CT in the UAE represents a radical change to the UAE tax landscape. UAE businesses should understand the CT rules and assess its implications in order to be compliant.
We will be publishing a more detailed analysis on the CT regime shortly.
Our multiple award-winning Tax team is here to help. With their expertise and significant experience of CT matters across the Middle East and all industry sectors, they are well placed to assess the impact of CT on your organisation and assist with your CT requirements in the UAE.