Ministry of Finance holds first session
The first session of the corporate tax public awareness programme in Abu Dhabi. Image Credit: WAM

Abu Dhabi: More than 350 tax experts, business sector representatives and company owners attended the first session of the Ministry of Finance’s corporate tax public awareness programme, in Abu Dhabi on Monday.

The session follows the issuing of the Federal Decree-Law on Taxation of Corporations and Businesses (the Corporate Tax Law) last month, whereby all UAE-based businesses will become subject to corporate tax from the beginning of their first financial year that starts on or after June 1, 2023.

The session was also attended by representatives of the ministry, the Federal Tax Authority (FTA), and the Abu Dhabi Chamber of Commerce and Industry.

The tax has been set at 9 per cent for taxable profits exceeding Dh375,000.

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The session was presented by experts from the Ministry of Finance including, Shabana Begum, Executive Director of Tax Policy Sector; Fatima Al Sheikh, Director of Tax Policies and Legislations; and Rasha Hajj Hussein, Tax Policies and Legislations Expert. An overview presentation shed light on the Corporate Tax Law, introducing participants to various aspects of the new regime, including scope, rate, key definitions, exempt persons, free zones, administration, and timelines.

The session is the first in a series of in-person workshops, set to be held in all seven emirates.

The finance ministry had launched the Corporate Tax Public Awareness Programme last month out of commitment to supporting various business sectors and introducing their teams of specialists – including corporate finance managers, chief finance officers, legal advisors and experts, tax auditors and agents, accountants, and business owners – to the general framework of the law and how to comply with it.

Organised with the support of the Abu Dhabi Chamber of Commerce and Industry, the session was attended by Younis Haji Al Khoori, Undersecretary of Ministry of Finance, and Khalid Ali Al Bustani, Federal Tax Authority Director General.

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In his address, Al Khoori said the UAE corporate tax law embodies the government’s directives and vision to drive economic diversification in the country, diversify sources of government income, serve the community, and shape a sustainable future, all the while strengthening the UAE’s position and its economic and financial competitiveness globally.

He noted that the ministry has drafted the law in accordance with international best practices to support the UAE’s strategic goals, promote tax transparency, and prevent harmful tax practices.

“In collaboration with our key partners, our team at the Ministry of Finance has strived to launch a public awareness programme on Corporate Tax, which includes organising a series of in-person awareness sessions across the country, in addition to virtual sessions.”

“The objective is to ensure access for and communication with the largest possible number of stakeholders, and bring them together to explore the basic features and strategic components of the UAE’s tax system, along with its impact on business and the national economy.”

Federal Tax Authority Director General Khalid Ali Al Bustani added: “The Corporate Tax system in the UAE marks an important step towards employing tax revenues to drive the UAE’s comprehensive development. The Federal Tax Authority will be playing a pivotal role in implementing the new system, taking on the responsibility for managing, collecting, and enforcing the law and all provisions related to Corporate Tax, as with all other tax systems in the UAE.”