Thousands of companies are drawn to UAE, claims business analyst amidst corporate tax implementation.
In the heart of Dubai, Anurag Chaturvedi, the CEO of Andersen UAE, addressed attendees at the 6th New Age Finance and Accounting Summit organized by Khaleej Times. Chaturvedi highlighted the UAE's appeal to European, CIS, and other international companies due to its conducive business environment, low tax regime, and abundant talent pool.
When the UAE implemented a 9% corporate tax rate in 2023, concerns arose about its potential impact on the economy. However, contrary to expectations, the UAE witnessed a surge in business registrations. More than 200,000 businesses were established between 2022 and 2024, despite the introduction of corporate tax – one of the lowest worldwide.
The UAE offers several advantages to businesses. These include various ownership structures, an array of free zones with various incentives, a strategically advantageous location, a robust banking system, and smart infrastructure.
Chaturvedi emphasized these points during his presentation titled "The Global Tax Landscape - Why UAE Remains a Competitive Advantage." He noted the increase in traffic within the UAE, attributing it to the influx of entrepreneurs seeking opportunities in the country, which is rapidly adapting to global trends.
Government entities, free zones, and chambers of commerce are working collaboratively to draw entrepreneurs to the UAE, according to Chaturvedi. The availability of talent, particularly in the UAE's diverse population, provides an added advantage, especially for companies facing talent shortages or high costs in the Western world.
The one-day summit drew hundreds of top finance and tax industry executives. The event featured discussions on critical industry issues, including AI, corporate taxes, e-invoicing, and others.
In terms of tax benefits, the UAE's corporate tax rate of 9% is one of the lowest globally. There is also no personal income tax, wealth tax, or capital gains tax, making the UAE an attractive destination for businesses and individuals. The absence of such taxes helps reduce the financial burden on businesses and individuals.
The UAE's well-developed banking sector, strategic location, smart infrastructure, and support for startups – particularly in tech sectors – further enhance its appeal. The UAE is known for its friendly business environment and ease of doing business. Free zones offering various incentives also contribute to the UAE's attractiveness as a business hub.
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- Anurag Chaturvedi, the CEO of Andersen UAE, mentioned the UAE's low tax regime and conducive business environment as appealing factors for European, CIS, and other international companies, during the 6th New Age Finance and Accounting Summit organized by Khaleej Times.
- The UAE's implementation of a 9% corporate tax rate in 2023 was met with concerns, yet the country saw a significant increase in business registrations, totaling more than 200,000 between 2022 and 2024.
- Chaturvedi noted that the influx of entrepreneurs seeking opportunities in the UAE has contributed to an increase in traffic within the country, as it rapidly adapts to global trends.
- The UAE offers numerous advantages to businesses, including a robust banking system, smart infrastructure, various ownership structures, free zones with incentives, a strategically advantageous location, and no personal income tax, wealth tax, or capital gains tax, making it an enticing destination for businesses and individuals.
