Dubai: A new law was issued reaffirming the existing 20 per cent tax on foreign banks operating in Dubai, but excluding those operating in the emirate's international financial centre (DIFC).
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, in his capacity as the Ruler of Dubai, issued the first law of 2024 applying an annual tax to all foreign banks operating in special development zones and free zones within the emirate.
However, foreign banks licensed by DIFC are exempt from these provisions concerning the income they generate from doing business within or through the centre, according to a statement on Emirates News Agency (WAM).
It is clarified, that the tax on banks will remain at 20 per cent and not an additional 9 per cent, which is the UAE corporate tax on businesses.
"The law mandates foreign banks to adhere to an annual tax rate of 20 percent on their taxable income," the statement added. "This percentage is subject to deduction of the corporate tax rate outlined in the law concerning corporate and business tax, and if the fore...