New Delhi, May 1 (KNN) The United Arab Emirates (UAE) will be imposing a new corporate tax after June 1, 2023 and financial experts have said that it will not cause a burden to the Indian businesses operating in the gulf nation.

NRI businesses in the UAE remain optimistic about the growth of business transactions between India and the UAE even if a new corporate tax is being introduced, reported BQ Prime.

According to such experts, NRI and Indian residents doing business in the UAE also say that taxation is a major relief to avail the double-taxation avoidance schemes and safeguard the uncertainties of income tax levied in India on their foreign income.

Dr Sahitya Chaturvedi, a Chartered Accountant and Convener of Retail Focus group of Indian Business and Professional Council, said “Taxation is an initiative for globalisation of the business from Gulf countries and the UAE has introduced the lowest corporate income tax rate within the GCC region at a standard rate of 9 per cent.”

“The UAE CT regime has been designed to incorporate best practices globally and minimise the compliance burden on businesses,” he said.

CA Harikishan Rankawat, Chairman of the Institute of Chartered Accountants of India Dubai Chapter, said that the decision to provide tax relief to companies with revenue base below or equal to AED 3 million is a welcome relief and reflects the visionary and pro-business leadership of the UAE.

Giving a textile industry perspective, Chandrashekhar Bhatia of the Global Business Federation said the impact will not be adverse as textile is a big industry and 9 per cent will not be a major burden.  (KNN Bureau)