By Céline Alkhaldi and Eoin McSweeney, CNN
Nearly 90% of Dubai’s population is made up of foreigners who have flocked to the Gulf business hub in search of year-round sunshine, prosperity and, of course, zero taxation.
But this week, the United Arab Emirates, of which Dubai is a part, announced for the first time the arrival of a corporate tax. So what does this mean for foreign companies and expats in the country?Here’s what you want to know.
Why is the UAE doing this and why now?
A 9% federal corporate tax will be levied on corporate profits starting in June next year. The UAE says it is meeting foreign tax criteria as major economies try to close loopholes in tax evasion. The country is reviewing one of the 136 to signal a global pact. last year it sets a minimum tax rate of 15% for giant multinational corporations and requires corporations to pay taxes in the countries where they operate.
Oil-producing Gulf countries are under pressure to diversify their revenues beyond hydrocarbons. The need for diversification is felt most when oil costs are low, but it turns out that the UAE has chosen not to wait for a crisis.
The new tax may raise up to $13 billion to government revenue, according to M. R. Raghu, chief executive of Marmore Mena Intelligence in Kuwait.
What do you have and who is affected?
In the past, the UAE imposed a corporate tax only on oil corporations and banks that operate outdoors in loose zones, economic zones where no tasks are charged. (about $102,000) in profits will be taxed. This would ensure that small businesses and startups are not affected. Companies engaged in the extraction of herbal resources are also exempt from the tax.
It is the big local companies, adding businesses from the circle of relatives, that “will have to pay,” says Raghu.
Will this deter foreigners and expats from moving to the UAE?
Improbable. La majority of neighboring Gulf states have some form of corporate tax, according to KPMG. The new tax rate will be the lowest of the moment in the Gulf, after Bahrain, which imposes such a tax.
The world’s major economies have much higher corporate taxes, with the United States applying a rate of 27% and the European Union averaging 20. 7%. The UAE’s competitive merit remains intact.
The effect on foreign corporations would be limited as many are based in loose zones, which remain tax-exempt.
Taxes on the source of personal income do not exist in the UAE and are very unlikely to be filed anytime soon.
“Given the massive percentage of the expat population and the UAE’s efforts to position the country as a retirement destination, non-public taxes don’t come into effect as easily,” Raghu said.
U. S. Claims to Kill ISIS Leader in Counterterrorism Raid
U. S. special forces killed ISIS leader Abu Ibrahim al-Hashimi al-Qurayshi in an operation in northwestern Syria, President Joe Biden said Thursday. White Helmets.
Background: The operation appears to be the largest of its kind carried out by U. S. forces in the region since the 2019 raid that claimed the life of ISIS leader Abu Bakr al-Baghdadi, according to Charles Lister of the Middle Oriente. Al-Qurayshi Institute replacing him.
Why it matters: ISIS has re-emerged as a fatal threat, helped by a lack of power plants in many areas.
Lebanese central bank governor summoned through judge
A Lebanese ruling on Tuesday issued a subpoena against central bank governor Riad Salameh after he failed to appear three times for questioning.
Background: The World Bank called the Lebanese economic crisis a “deliberate depression. “Salameh, who faces charges of monetary misconduct, was sanctioned with a ban last month.
Why it matters: Salameh is also under judicial investigation in European countries and the governor’s banking policies are widely recognized as the main driving force behind the currency collapse. He has denied the corruption allegations.
USA. U. S. Sends Fighter Jets to UAE Amid Growing Houthi Threat
The United States will deploy complex fighter jets to help the UAE as it faces a growing risk from the Iranian-backed Houthi movement in Yemen, in a message of “solidarity and defense not unusual. “
Background: On Wednesday, EMIRATI forces intercepted and destroyed 3 drones in an attack shown by the Houthis. This is the fourth such attack in 3 weeks.
Why it matters: The UAE has insisted that the U. S. The U. S. military designates the Houthis as a terrorist organization, which Biden says is “under consideration. “
Fears are developing about the plight of internally displaced Syrians as a winter wave of excessive sweeps without bloodshed in parts of the country. Two young children froze to death in a camp in Idlib, northwestern Syria, on Monday, doctors told CNN. One two months old and the other a week old, according to Mazen al-Tellawi, medical director of Al Rahman Hospital, which beat the children.
Watch this report through Arwa Damon about Syrians suffering in freezing conditions.
In the 1990s, Saddam Hussein displaced a century-old network of swamp dwellers in Iraq, reducing its population to a fraction of what it once was. Today, what remains is threatened by climate change, the UN warned.
The marshes of southern Iraq are a rare water spectacle in the arid Middle East. They are home to the Marsh Arabs, who were exploited for agriculture and oil exploration during Saddam’s rule. The leader then tired the marshes and expelled his population to settle political accounts. . After its reversal, the marshes were partially restored and designated a UNESCO World Heritage Site in 2016.
But the swamps are drying up as temperatures and the amount of rain drop. Poor rural families may face displacement and health disruptions if the government does not intervene.
“Swamps are not only beautiful landscapes, they are also beautiful for Iraq’s biodiversity,” said Jeanine Hennis-Plasschaert, Special Representative of the UN Secretary-General. the political spectrum will result in Array”
The United States will designate Qatar as a non-NATO best friend (MNNA). The designation is expected to replace dating between the Gulf state and the Western Army. But what is a non-NATO main best friend?
The name is enshrined in U. S. law. It brings economic and military advantages to the spouse countries, while carrying the symbolism of a close relationship. Qatar may now be eligible for loans of defense apparatus and gain advantages from bilateral training of the U. S. military. USA You can also download the budget for the progression of the fight against terrorism and conclude cooperation agreements with the United States on research. Other regional MNNs come with Bahrain, Israel, Jordan, Kuwait and Morocco.
El-CNN-Wire™