1. Public consultation begins on corporate tax framework
The Ministry of Finance of the United Arab Emirates (UAE) has opened a public consultation on its proposed 9 per cent federal corporate income tax for financial years starting 1 June 2023. Limited partnerships, general partnerships and other unincorporated vehicles are to be treated as transparent for corporation tax purposes, but limited liability partnerships and other types of partnerships will be subject to corporation tax. Free zone entities are expected to be granted zero tax status, provided they maintain adequate substance and comply with the regulatory requirements. However, they will be disqualified if they also trade with the UAE mainland other than receiving passive income. The consultation closes on 19 May 2022.
News Source：【Baker McKenzie 2022/04/29】
2. Dubai enacts virtual-assets regulatory regime
The United Arab Emirate (UAE) of Dubai has enacted a law introducing regulation of virtual assets under the supervision of a new regulatory authority. It is expected that implementing regulations will be issued soon and will implement a licencing regime immediately, according to law firm Eversheds Sutherland. The law is specific to Dubai and information on how the UAE's other emirates will regulate virtual assets is not as yet known.
News Source：【Eversheds Sutherland 2022/03/24】