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Find out moreWe are excited to share the latest edition of the Law Update, beautifully and appropriately titled “Sustainable Horizons: The Saudi Arabian Vision.” Giving special honor to the Kingdom’s 2030 vision, this update focuses on a collection of both informative and inspiring articles.
For those in construction, you can learn about how the tendering environment impacts risk-pricing for contractors, the updates on the legal framework of the construction industry and how contractors can protect themselves against financial difficulties.
There is good news too from the kingdom’s banking sector, from which the practice of “Open Banking” is being pushed for! But what is open banking? We’re answering that too.
Also . . . Are there any women trail blazers in Saudi Arabia you can name? We’ll help you with that. We cover how the Middle East has been making strides in empowering women in the entrepreneurial space,most notably in STEM fields.
Read the full editionOn 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.
Some Frequently Asked Questions have been published by the MOF (link here) and the Federal Tax Authority (link here). Further guidance and details are expected to be issued in the coming months.
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.
To learn more about our services and get the latest legal insights from across the Middle East and North Africa region, click on the link below.