Dr. Thani bin Ahmed Al Zeyoudi
The UAE has no plans to follow up its new corporate tax with one on personal income. Image Credit: WAM

Dubai: The UAE will not introduce an income tax for the time being, said Dr. Thani Al Zeyoudi, Minister of State for Foreign Trade.

“It is not at the table at all now,” he said in an interview on Monday. The Gulf country said earlier this year it would impose a 9 per cent corporate tax starting in 2023 as it seeks to align itself with new international standards, particularly the move toward a global minimum tax on multinational corporations endorsed by the Group of 20 major economies.

The UAE’s new corporate tax has been received in a positive manner by businesses, said the minister. The new levy is going to replace most of the fees companies now have to pay, according to Al Zeyoudi. The Gulf nation has already taken several steps to dilute its reputation as a tax haven for both businesses and individuals.

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It introduced a 5 per cent value-added tax in 2018. It already taxes banks and insurance companies operating outside of the country’s vast network of free zones as much as 20 per cent on their profits. The oil and gas sector of OPEC’s third-biggest producer is also taxed under a separate programme.

Over the next few weeks, the Ministry of Finance is expected to announce more details clarifying how the corporate tax will be imposed.