On 7 March 2024, Dubai, one of the seven states of the UAE, announced that it approved Law No. (1) of 2024, in which foreign banks will have to pay an annual corporate tax of 20%. The provisions of this new law, issued by the government of Dubai, apply to all foreign banks operating in Dubai, including special development zones and free zones, except foreign banks licensed to operate in the Dubai International Financial Centre (DIFC). According to the UAE’s Corporate Tax Law, when a foreign bank pays taxes, the corporate tax amount is subtracted from the tax rate specified by Dubai law, resulting in an effective tax rate of 11% (20% bank tax minus 9% corporate tax). The law specifies the principles governing the calculation of taxable income, tax filing and payments, procedures for the audit of tax filing, voluntary disclosure, and responsibilities and procedures related to tax auditing.
Related Posts
UAE: FTA publishes new corporate tax guide
The UAE Federal Tax Authority (FTA) released a new Corporate Tax Guide on Tax Returns—CTGTXR1—on 12 November 2024, providing general guidance on filing and completing a return. This guide should be read by anyone required to file a tax return
Read MoreUAE offers grace period for updating tax registration information
The Federal Tax Authority (FTA) of UAE announced that a new Decision has been issued to support businesses in efficiently meeting their tax obligations on 6 November 2024, offering a grace period for tax registrants who have fallen behind on
Read MoreUAE urges Resident Juridical Persons to register for corporate tax before end of November
The Federal Tax Authority (FTA) has urged Resident Juridical Persons with Licences issued in October and November, irrespective of the year of issuance, to promptly submit their Corporate Tax registration application no later than 30 November
Read MoreUAE publishes guide on corporate tax for real estate investment
The UAE Federal Tax Authority has published a guide outlining corporate tax rules for individuals earning income from real estate investments on 24 October 2024. Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and
Read MoreUAE to implement mandatory e-invoicing for B2B, B2G transactions
The UAE Ministry of Finance (MoF) has announced plans to implement a mandatory electronic invoicing (e-invoicing) system for business-to-business (B2B) and business-to-government (B2G) transactions. The implementation of this e-invoicing system
Read MoreUAE: Tax Authority releases guide on tax residence and residency certificates
The UAE Federal Tax Authority released a new guide on tax residence and tax residency certificates, titled Tax Procedures Guide on Tax Resident and Tax Residency Certificate - TPGTR1. Federal Decree-Law No. 47 of 2022 on the Taxation of
Read More