The Ministry of Finance has held the first session of the Corporate Tax Public Awareness Programme in Abu Dhabi with leading officials in attendance, along with representatives of the Ministry of Finance, the Federal Tax Authority (FTA), the Abu Dhabi Chamber of Commerce and Industry, and more than 350 tax experts, business sector representatives, and company owners.

The session follows the issuing last month of the Federal Decree-Law on Taxation of Corporations and Businesses (the “Corporate Tax Law”), whereby all UAE-based businesses will become subject to Corporate Tax from the beginning of their first financial year that starts on or after 1st June 2023.

The Tax has been set at 9 percent for taxable profits exceeding Dhs375,000 - a rate that will ensure that the UAE’s Corporate Tax system is among the most competitive in the world, which, in turn, will serve to strengthen the country’s position as a global financial and business centre.

The Ministry of Finance had launched the Corporate Tax Public Awareness Programme last month out of commitment to supporting various business sectors and introducing their teams of specialists - including corporate finance managers, chief finance officers, legal advisors and experts, tax auditors and agents, accountants, and business owners - to the general framework of the law and how to comply with it.

Organised with the support of the Abu Dhabi Chamber of Commerce and Industry, the session was attended by Younis Haji Al Khoori, Undersecretary of Ministry of Finance, and Khalid Ali Al Bustani, Federal Tax Authority Director General.

In his address, Al Khoori said the UAE Corporate Tax law embodies the UAE government’s directives and future vision to drive economic diversification in the country, diversify sources of government income, serve the community, and shape a sustainable future, all the while strengthening the UAE’s position and its economic and financial competitiveness globally.

He noted that the Ministry has drafted the Corporate Tax Law in accordance with international best practices to support the UAE’s strategic goals, promote tax transparency, and prevent harmful tax practices, given the UAE’s role as an active member of the OECD’s Inclusive Framework on Domestic Tax Base Erosion and Profit Shifting (BEPS).

“In collaboration with our key partners, our team at the Ministry of Finance has strived to launch a public awareness programme on Corporate Tax, which includes organising a series of in-person awareness sessions across the country, in addition to virtual sessions,”

Al Khoori explained, “The objective is to ensure access for and communication with the largest possible number of stakeholders, and bring them together to explore the basic features and strategic components of the UAE’s tax system, along with its impact on business and the national economy.”

“The programme was designed to ensure companies and businesses are prepared to implement and comply with Corporate Tax regulations. With that in mind, we brought in a group of experts and specialists from the Ministry of Finance and the Federal Tax Authority to clarify all key points, details, and procedures related to the Corporate Tax system, and answer participants’ questions,” he added.

The Ministry of Finance Undersecretary went on to thank the Abu Dhabi Chamber of Commerce and Industry for their collaboration and role in organising the first session of the Corporate Tax Public Awareness Programme, which reflects the Chamber’s commitment to supporting various business sectors to grow and play a bigger part in promoting the UAE as a global economic hub and a destination of choice for business and investment.

Federal Tax Authority Director General Khalid Ali Al Bustani said, “The Corporate Tax system in the UAE marks an important step towards employing tax revenues to drive the UAE’s comprehensive development. The Federal Tax Authority will be playing a pivotal role in implementing the new system, taking on the responsibility for managing, collecting, and enforcing the law and all provisions related to Corporate Tax, as with all other tax systems in the UAE.”

“Today’s session is of particular importance given its role in raising awareness about the Corporate Tax system and how to comply with it,” Al Bustani added. “It offers a platform to listen to attendees’ feedback and opinions, taking them into account while implementing the tax system. With that in mind, we are participating today with our tax experts, accompanied by specialists from the Ministry of Finance, who are here to provide an overview of Corporate Tax. And this applies not only to this session, but also all upcoming sessions across the country.”

WAM