Dubai: The United Arab Emirates announced Monday it is introducing for the first time a federal corporate tax on business earnings. It’s the latest measure to bring the country in line with many governments worldwide but one that also chips away at its competitive advantage.

The UAE home to Abu Dhabi, Dubai and five other emirates has been steadily introducing new taxes as it seeks to diversify revenue from its mainstay of oil. It is unclear how the new 9% corporate tax on earnings will impact consumers as some businesses could raise their prices as a result.

Businesses across various sectors in the UAE are still reeling from the effects of the coronavirus pandemic. Untold numbers of foreigners, who comprise around 90% of the UAE’s population, lost their jobs amid the pandemic and salaries were slashed in key industries such as tourism, real estate and the construction sector.

The UAE has recently taken steps to try and retain foreign investors, including loosening restrictions on business ownership rules and granting longer-term visas for some. It has also liberalised some of its Islamic laws around alcohol and unmarried couples, and moved to a Monday-Friday workweek.

Still, the UAE faces steep competition from neighbouring Saudi Arabia, which is working overtime to attract businesses and families to relocate to the kingdom.

The UAE’s Ministry of Finance said the new federal tax of 9% on profits would be effective starting June 1, 2023. The corporate tax will not apply to personal income from employment, real estate and other investments, or to income earned from a business licensed outside the UAE.

The UAE has long positioned itself as a place where foreign investors are welcome and where incomes are tax free. Low taxes and a friendly business environment helped to transform the 50-year-old nation over the years.

The new corporate tax also does not apply to companies in Emirati free zones unless they conduct their business onshore. Another exception are oil and gas companies, which are subject to their own tax schemes.

Business profits of up to roughly 102,000 will not be taxed, the ministry said, in order to support small businesses and startups. Furthermore, foreign taxes can be credited against the UAE’s corporate tax to avoid double taxation. The tax scheme will allow UAE business groups to be taxed as a single entity or apply for relief amid losses or restructuring.

Various emirates in the UAE have been steadily introducing fees and taxes in past years. After oil prices dipped dramatically in mid-2015, the government reduced some subsidies and imposed a 5% value added tax on most goods and services, a standard tax that is still lower than in many countries around the world.

Mangaluru: Senior leader C M Ibrahim will never leave the Congress, newly appointed deputy leader of the Congress legislature party in Karnataka U T Khader said on Monday.

Addressing reporters here, Khader said there is no question of the senior leader quitting the party. The party has always recognised Ibrahim’s contributions and will continue to do so in future, Khader said.

Khader also said there is no link between his appointment as CLP deputy leader and the disgruntlement of Ibrahim.

Journalist Rana Ayyub

Mumbai: Mumbai Police registered an FIR against unidentified persons for posting obscene comments and issuing death threats to journalist Rana Ayyub on her social media accounts, a police official said on Monday.

The FIR was registered by the west region cyber police station on Sunday under various sections of the Indian Penal Code (IPC) including 354-A (Sexual harassment), and the Information Technology Act on a complaint filed by Rana Ayyub, he said, adding that further investigation is underway.

“Mumbai Police has registered an FIR against those who disseminated fake news, morphed tweets and death and rape threats against me. About time these brazen and consolidated acts of online violence are stopped and the perpetrators brought to book, Rana Ayyub tweeted.

Thiruvananthapuram: The Kerala High Court on Monday afternoon stayed the Central Government’s order barring broadcast of Media One news channel.

The Kerala High Court has sought response from the Centre reasoning their move and has stayed the order.

The Court said it will hear the matter on Wednesday February 2.

On March 6, 2020, Media One and Asianet News broadcasting were temporarily restricted. After widespread protests, they were later allowed to broadcast again.

Kolkata: West Bengal Chief Minister Mamata Banerjee on Monday said she has blocked Governor Jagdeep Dhankhar on Twitter, “disturbed” by his regular posts against her government on the microblogging platform.

Banerjee also said that Dhankhar has threatened the chief secretary and the director general of police on several occasions.

Addressing a press meet here, the CM said she has written to Prime Minister Narendra Modi several times, seeking the removal of Dhankhar.

“However, no action has been taken so far,” Banerjee, who shares an acrimonious relationship with the governor, said.

Kadaba: In an incident that came to light on Monday morning, the lock to the Nekkittadka Dargah’s door was found broken during early hours revealing the theft of cash from the Dargah near Mardhala.

The CCTV installed in the Dargah premises has recorded the movement of the two thieves who reportedly arrived at the scene around 3 am in their Bike. 

As the steel doors of the Dargah were closed with two locks, the thieves have reportedly broken one lock and resorted to severing the door’s latch after they were unable to open the second lock.  It is also learned that the thieves have made away with more than Rs. 30,000 in cash from the Dargah. 

Police arrived at the site and have undertaken an investigation, it is learned.