The UAE Ranks Fourth In Tax Policy Category In World Competitiveness Year Book Among 63 Economies

The World Competitiveness Yearbook 2022 Peer Group rankings positioned the UAE 4^th in Tax Policy category. Published by Switzerland-based International Institute for Management Development (IMD), the World Competitiveness Yearbook assesses and ranks 63 economies around the world and bases its classification typically on four main indicators – economic performance, government efficiency, business efficiency and infrastructure. The UAE’s 4^th place in Tax Policy denotes the country’s total contribution to GDP with its taxes, its stable rates of inflation, low tariffs and balanced price indexes.

In connection with this global ranking and with the UAE all set to implement corporate tax this year, Al Dhaheri Jones & Clark have set up a new division to cater specifically to the growing corporate tax compliance needs of UAE businesses.

“The UAE has been a hub for international trade and business for a long time, and the introduction of Corporate Tax has only paved way for the country to boost its GDP growth as well as streamline the business operations. Also, the UAE’s Corporate Tax regime is amongst the most competitive in the world, making it one of the most preferred destinations for businesses to operate here. In the same context, we have launched a new division that aims to help and facilitate companies in the country to understand the implications of these new regulations, as well as streamline compliance,” revealed Al Dhaheri Jones & Clark in an official statement.

Al Dhaheri Jones & Clark is a Dubai based consultancy firm that renders services as auditors, financial and accounting experts as well as advisors and consultants across enterprises and SMEs in the UAE.

The new division will empower businesses in the UAE with in-depth information on corporate tax highlighting applicable rates, tax planning, tax impact assessment, litigation support, corporate tax advisory and more.

The company believes that while the corporate tax is a straightforward compliance process, businesses can feel overwhelmed when they don’t have the right information.

As experts in tax consulting, Al Dhaheri Jones & Clark is keen to offer support to the organisations in the UAE transition through this phase seamlessly, giving them an opportunity to focus on their core operations.

As per the UAE Ministry of Finance, businesses in the UAE will have up to nine months from the end of the relevant tax period to submit their tax return and pay the federal corporate tax. The UAE issued its federal corporate tax a few weeks back that will levy a headline 9 per cent rate on taxable income exceeding Dh375,000 ($102,000).Taxable profits below the threshold will not be taxed. No corporate tax will apply on salaries or other personal income from employment — be it in the government, semi-government, or private sector, the Ministry of Finance said last week.The corporate tax will be effective for financial years starting on or after June 1, 2023.