The National Bank of Fujairah (NBF) has hosted the latest in its successful series of knowledge-sharing events, providing a round-up of the recent developments in UAE corporate taxation. The event was attended by customers from different business sectors in the UAE.
Under the theme ‘UAE corporate tax and the evolving business landscape’, the event brought together business leaders, tax and accounting experts, and legal advisors to discuss the latest developments in the federal corporate tax system which came into force in the UAE last June, the difficulties businesses might face in achieving maximum tax efficiency, and how to best adjust their operations (e.g. through restructuring or consolidation) to the new system.
Specific topics covered included, among others, the impact of corporate tax on profitability, how changes affect free zone companies and SMEs, and which income is tax free, all brought to life through real life case studies from business in the midst of their first year of corporate tax.
Introduced in June 2023, the UAE’s federal corporate tax is one of the most competitive in the world, at 9% for taxable income exceeding AED 375,000. However, the tax system is still a new addition to the country’s legal framework and requires companies to revise their financial models and investment strategies.
As businesses navigate their first tax year, many are considering the potential impact of the new regime on their profitability and operations. Some have already established dedicated tax departments, while others have engaged tax advisors to provide guidance and help them ensure compliance.
The event was the latest in NBF’s knowledge event series, which most recently has explored sustainable finance and Islamic finance. The event series will run throughout 2024.
