Image credit: WAM
The UAE’s Ministry of Finance announced that it is extending the deadline for feedback and comments on its recently launched Corporate Tax Free Zone public consultation, as reported by state news agency WAM.
The new deadline set for free zone-based businesses to share their inputs is August 9.
The Ministry of Finance had launched a digital public consultation on its website as part of the Corporate Tax Free Zone regulations. The initiative allows for feedback from stakeholders and the business community.
The Ministry of Finance has extended the deadline for feedback and comments on the recently launched Corporate Tax Free Zone public consultation on its website until August 9th. pic.twitter.com/6NBrqOmwuP
— وزارة المالية | الإمارات (@MOFUAE) August 1, 2023
The consultation period was to run from July 19 to August 2 which has now been extended by a week.
Corporate tax public consultation initiative
“This initiative reflects the significant contribution of free zones to the local economy, and their integral role in stimulating growth and economic transformation locally and internationally,” the ministry stated in its launch statement.
“The digital public consultation also reflects the ministry’s belief in the importance of consulting with the business community and relevant stakeholders, as part of its priorities to contribute to the achievement of the UAE’s strategic goals.”
The MoF had stated that responses will remain confidential and will not be published.
By engaging in this consultation, the Ministry of Finance said it aims to gather feedback from free zone-based companies, ensuring that their activities align with the qualifying and excluded business activities.
The Ministry of Finance had announced the introduction of a federal Corporate Tax on business profits effective for financial years starting on or after 1 June 2023 in January 2022.
Under the new Corporate Tax regime, qualifying free zone entities can avail a zero per cent tax rate, provided they can be categorised as performing qualifying activities. The Ministerial Decision No. (139) of 2023 provides details on what constitutes as qualifying activities and excluded activities.