Sharjah Introduces New Income Tax on Branches of Foreign Banks
The newly promulgated & published Law (Decree by Law No. 2 of 2023) stipulates that a branch operating for the first time in Sharjah, will be exempted from this tax for the first 2 years of operation.
The Law also creates room for tax discounts or reliefs to avoid double taxation (on the federal level).
Settlement of tax should be done by 30 September (at latest) of the relevant Financial Year. Otherwise a penalty of (1%) of the due amount will be levied for every month of delay and until complete settlement.
The yearly renewal of the branch's commercial license and commercial registration will be impacted in the event tax dues were not settled.
Nadim Al Jisr joined Thomson Reuters in 2014 as a Content Specialist, then moved to oversee the Westlaw Middle East platform and manage its growth. Nadim holds a Bachelor’s Degree in Law and has more than 10 years of experience as a legal consultant and litigator in Lebanon, Saudi Arabia and UAE. Nadim is native Arabic speaker and proficient in English and French. Nadim is currently completing his Master’s Degree in Law. Nadim is currently the Editorial Lead heading the MENA Content Team.