Senior business leaders of companies in the United Arab Emirates have welcomed the latest move by the Ministry of Finance to grant relief for startups and other small or micro businesses under the corporate tax.
With the new pronouncement, taxable persons that are resident persons can claim Small Business Relief where their revenue in the relevant tax period and previous tax periods is below AED3 million for each tax period.
“This is great news for investors looking to UAE as their start up launchpad. It is quite empowering and inspiring for them as well as us as industry leaders that Ministry of Finance’s will offer small businesses relief on corporate tax,” said Kamal Vachani, Group Director and Partner of Al Maya Group.
“This will further enhance UAE’s position as an investment hub globally. This announcement is yet again a testament of this great nation’s vision, mission, ambition has and continues to be such a beacon of hope for us all,” Vachani added.
Al Maya Group, the UAE-based business conglomerate, has more than 50 supermarkets in the GCC countries in addition to other businesses.
For Dr. Karen Remo, CEO & Founder of New Perspective Media Group and Chairman of Philippine Property and Investment Exhibition, any assistance to small and medium businesses is a welcome development as it accounts for a large majority of businesses worldwide and are significant contributors to employment.
“That is why we, in the business community, commend the UAE government for the tax relief plan to businesses, startups and self-employed UAE residents with revenues of Dh 3 million or less under Ministerial Decision No.73 of 2023,” she continued.
Dr. Remo noted that “Through our initiatives, including the upcoming 9th annual Philippine Property and Investment Exhibition, we are committed to supporting the dissemination of further details and other insights that will empower entrepreneurs based in the UAE and bolster the position of the country as a haven for startups and SMEs.”
The Philippine Property and Investment Exhibition is the largest international investment and property show that brings together heavyweight Philippines property developers in a single location to showcase their best and most affordable projects.
What it means for business owners
As the initiative is intended to support small businesses, business owners commend the decision for it is beneficial on their part.
“I believe that the move is expected to encourage more entrepreneurs to start their own businesses in Dubai, which is known for its vibrant and diverse economy. I also believe that the relief will also provide a much-needed boost to small businesses that have been struggling due to the economic impact of the Covid-19 pandemic,” said Junah Balungcas, owner of Baofriend Restaurants.
Balungcas told The Filipino Times (TFT) that she is personally very happy with the positive development that will help reduce their financial burden.
“Overall, the small business relief for corporate tax purposes is a positive step towards promoting entrepreneurship and supporting the growth of small businesses in Dubai,” she added.
Meanwhile, for Ellanie Villena, Owner of Angel Wings International Tourism LLC, the ministerial decision was eagerly anticipated by many sector participants.
“It’s a good step for the government to help small enterprises transition from a no-taxation environment to a corporate tax regime,” Villena shared with TFT.
The Ministry of Finance’s announced relief for small and micro businesses, startups, and freelancers under the corporate tax, will come into effect starting June 1 this year.
