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.