UAE Corporate Tax Amendment

The UAE Ministry of Finance recently issued new amendments to its tax structure wherein businesses will be subject to Corporate Tax after 1 June 2023. To decode its impact, our subject expert, Sneha Pai, Senior Director, Direct Tax, spoke at length at a recently held event on the ‘Impact of Recent Amendment of Non-resident Companies’.

During the event, Sneha elaborated on the possible implications that the changes in the UAE tax structure will have on non-resident companies and the business environment. She commenced the event by highlighting the changes in the withholding tax rates for non-residents while highlighting the key benefits under the provisions of tax treaties.

Furthermore, Sneha provided an apt summary of the tax rates applicable to Royalty and FTS payments in various scenarios. She also touched upon the updates related to Significant Economic Presence while mentioning the change in interest rates of the withholding tax rate for loans availed post 30 June 2023.

Towards the end of the event, Sneha shared several critical insights to help non-resident entities stay cognizant and compliant with the new UAE Corporate Tax amendments.