The United Arab Emirates is putting a federal corporation tax on business revenues for the first time. It’s the latest action to put the country in line with many countries across the world. The United Arab Emirates (UAE), which includes Abu Dhabi, Dubai, and five other emirates, has been slowly implementing additional levies in order to diversify revenue away from its base of oil. It is unknown how the new 9% corporate income tax will affect consumers, as some firms may hike their prices as a result.
Businesses in the UAE’s diverse sectors are still struggling from the consequences of the coronavirus outbreak. A huge number of foreigners, who make up around 90 percent of the UAE’s population, were laid off as a result of the epidemic, and wages in important areas, including tourism, real estate, and construction, were reduced.
The UAE has lately made moves to retain international investors, such as relaxing limitations on corporate ownership rules and giving longer-term visas to certain. It has also relaxed parts of its Islamic restrictions regarding alcohol and unmarried couples, as well as switched to a Monday-Friday workday. Nonetheless, the UAE faces stiff competition from neighboring Saudi Arabia, which is pushing hard to entice businesses and families to come to the nation.
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