UAE’s Tax-Free Allure Dims With New Corporate Profit Levy (4)

The United Arab Emirates will impose a federal levy on corporate earnings for the first time next year, as it dismantles a tax-free regime that’s made it a magnet for global business but drawn scrutiny over transparency.

The measure comes as the UAE seeks to align itself with new international standards, particularly the move toward a global minimum tax on multinational corporations endorsed by the Group of 20 major economies last year. The ambitious plan aims to eventually set 15% as the base levy to stem international competition to offer more attractive rates.

The UAE announced in July its support ...