The UAE on Friday issued a corporate tax law, under which a nine per cent tax rate will be applicable on companies posting a profit of above Dh375,000.
According to Tax Foundation, three countries Bangladesh, Argentina and Gibraltar – increased their corporate income tax rates while 17 countries reduced their corp.
UAE’s decision to reduce tax penalties a big relief for private sector
Waheed Abbas Filed on May 8, 2021
Tax reduction will encourage taxpayers to reassess their past VAT returns, rectify the errors, and come out clean in the eyes of the law
Dubai – The recent decision by the UAE Cabinet to reduce tax penalties will encourage companies and individuals to make voluntary disclosures if they made a mistake in their tax re-turns and it will also provide them big relief during the pan-demic, say tax experts.
Mayank Sawhney, managing director at MaxGrowth Consult-ing, said the reduction in late payment penalties for VAT or Excise Tax from six per cent in the first month and one per cent per day to two per cent for the first month and four per cent per month after that, will offer a big relief to the busi-nesses facing cash crunch due to tough market conditions and they are not able to settle their tax liabilities on time.