February 18, 2022Dated: | Byadmin admin | The UAE Finance Ministry committee had announced some modifications in the federal corporate tax on business profits starting from June 1, 2023. The standard statutory has a tax rate of 9 percent while according to the new reforms a zero percent tax rate is applicable on all the taxable profits for small businesses and startups with the amount of Dh375,000. The UAE Government is one of the most competitive in the world and doesn’t have any sort of corporate tax on personal income generated from employment, real estate, investments, and any other mode of income by the individual whose source wouldn’t be from any business or commercial activity licensed and permitted to operate in the UAE. The UAE Government doesn’t charge tax on individuals but there are ways in which they retain fees from the general public which aids in the economic development of the UAE. If you are a beginner who is looking to begin your journey in the world of business, start-ups connect with FlyingColour Business setup services to develop an understanding of the immigration services, taxes, accounting for smooth transactions in the future. The UAE Government has the following taxes in the country for individuals such as Excise Tax The UAE Government has levied taxes on some specific goods which are harmful to public health and the environment. Consumers tend to pay more for these goods and the government has used the strategy to reduce consumption of these unhealthy goods and focus on getting more revenue that benefits the economy of UAE. The tax is levied on various goods such as energy drinks, carbonated drinks, tobacco, electronic smoking devices, tools, sweetened drinks, and much more. Value Added Tax VAT is imposed on the consumption of goods and services whereas the UAE Government has levied 5% VAT on the sale. The business is entitled to collect taxes on behalf of the government. VAT is considered one of the new sources of income in Dubai and will contribute to the development of the economy. This new source of income will aid the benefit of the general public by providing them top-notch services which eliminate the government’s dependence on oil and petroleum to generate revenue. Taxes on Tourist Facilities The UAE Government website has stated that businesses like restaurants, businesses, apartments, holiday homestays, resorts, and more who are commencing their business in UAE are entitled to charge at least one tax from the tourists such as 6 percent tourism fees.City tax which varies between 6-10%10 percent tax on rooms.10 percent tax on service charge.10 percent tax on municipality fees. If you are looking to commence your operations in business FlyingColour Tax consultants can help you out and make you aware of the taxes and how they will benefit the business in the long run. The government has imposed a tax on various goods and services which can get you returns if you set up the business in the proper way with the experts.