Emerging Markets Rates and Currencies Handbook

Tax Summary – United Arab Emirates United Arab Emirates Country Tax Deductibility and Considerations Inter-Co Debt Offshore Bank Loans Offshore Local Borrowing Derivatives Equities W/H Tax • No WHT • N/A • No WHT Deductibility of interests • Deductible • In cases of net losses in any given year, losses can be carried forward for only 2 years • N/A Deductibility of (FX) Losses • Deductible • In cases of net losses in any given year, losses can be carried forward for only 2 years Other Taxes/Duties • VAT exemption applies to certain FIs • Interest Income / Expense / FX income exempt • General VAT rate of 5%, with some goods and services being VAT exempt • VAT exemption applies to certain financial services • Interest income / expense / FX income exempt • The UAE has introduced federal level corporate taxation on the net profits of businesses. The tax will become applicable either on 1 June 2023 or 1 January 2024 depending on the financial year followed by the business. The standard rate of tax will be 9%. • General VAT rate of 5% with some goods and services being VAT exempt. • VAT exemption applies to certain financial services. • Interest income / expense / FX income exempt.