Sharjah imposes 20% tax on natural resource companies

Sharjah: Sharjah has introduced a 20 per cent tax on the tax base of companies involved in extracting and processing natural resources. The new law, issued by His Highness Dr Sheikh Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, explained the tax applies to extractive and non-extractive businesses in the sector.

Natural resource companies, subject to this law and liable for any direct taxes under federal legislation, will be granted a deduction from the tax payable.

The tax base is the total value of all assets, income and economic activity that can be taxed by a taxing authority, usually a government. It is used to calculate tax liabilities.

Tax liabilities are the portion of the tax base that is collected. They come in many forms, including income, property, capital gains, and sales taxes.