The Gulf Arab oil exporter, a magnet for the globe's ultra-rich, has long benefited from its tax-free status to carve out a role as an international commercial, energy and tourism hub.
The ministry added that the move would pave the way for the introduction of a global minimum tax rate that would apply a different corporate tax rate to large multinationals that meet specific criteria. "With the international tax treaty signed at the end of last year, many corporates may still have to pay a top-up tax in their country of residence. It is positive for the UAE to earn the tax on the business conducted and income sourced domestically," said Monica Malik, Chief Economist at Aby Dhabi Commercial Bank.
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