Imposed 20 per cent annual tax on foreign banks
12 Mar 2024
On 7 March 2024, the Government of the United Arab Emirates enacted Law No. 1 of 2024, which imposes a 20 per cent annual tax on foreign banks operating in the Emirate of Dubai. Exceptions are made for banks licensed within the Dubai International Financial Centre. This law establishes guidelines for determining taxable income and sets out the protocols for filing tax returns. It also outlines procedures for auditing tax returns, voluntary disclosures, and the responsibilities and procedures during tax audit proceedings. The law applies to all foreign banks operating in Dubai, including those in special development zones and free zones. Should a foreign bank pay tax under the corporate tax law, this amount will be deducted from the annual 20 per cent tax. The Director General of the Department of Finance is authorized to issue decisions necessary to implement this law, which will be published in the Official Gazette.
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Type:
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Treatment and operation (Other)
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Industry:
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Services (Financial and insurance activities)
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