Ministry of Finance: Corporate Tax is Mandatory for All UAE Companies in 2025
The Undersecretary of the Ministry of Finance, Younis Al-Khoury, revealed that corporate tax revenues are not included in the 2024 budget as the implementation began in 2023.
Speaking during the ninth meeting of the Undersecretaries of the Ministry of Finance in the UAE, Al-Khouri emphasized that all companies would be subject to taxation in the coming year.
The gathering, hosted in Abu Dhabi, served as a significant platform for exchanging experiences and expertise. Al-Khouri highlighted the importance of enhancing coordination regarding developments in financial policies and the economic and financial reform efforts undertaken by authorities in Arab countries. These efforts aim to achieve economic and financial stability and promote comprehensive and sustainable growth, taking into account the current global developments.
The Federal Tax Authority reiterated its call for public joint-stock companies and limited liability companies to register through its electronic system, according to a recent letter sent to companies.
Dr. Fahd bin Muhammad Al Turki, the Director General and Chairman of the Board of Directors of the Arab Monetary Fund, addressed the meeting's opening session. He stressed the importance of studying expectations for the upcoming years through an analysis of current variables related to revenues, expenditures, deficits, and debts. This analysis aims to determine their impact on fiscal policy risks and their effects on the macroeconomy, considering the decline in growth and the high cost of financing.
The International Monetary Fund delivered a presentation on "Fiscal Policy Risks in Light of Declining Growth Rates and the High Cost of Financing" during the first session. The presentation addressed financial risks in the Middle East and North Africa region, suggested reforms and risk mitigation strategies, and advocated for comprehensive evaluation of financial risks by authorities.
The second session focused on "the green economy and the transition to clean and renewable energies." Several Arab countries contributed interventions on the topic, with the World Bank presenting a working paper on climate change impacts in the region and policy trends for promoting a green transition. The UAE's experience in transitioning to a green economy and adopting clean and renewable energy was also presented.
In the third session, the Arab Monetary Fund discussed "Sovereign Instruments Related to Sustainability: Opportunities and Challenges for Effective Implementation." The fourth session explored "The Interaction between Fiscal and Monetary Policies and the Impact on Economic Performance." The meeting provided a platform for Arab undersecretaries of the Ministry of Finance to engage in open discussions and share insights.
