New Tax Law announced for Foreign Banks operating in Dubai!
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, announced Law No. 1 of 2024 concerning the taxation of foreign banks in Dubai, which applies to all foreign banks operating in the Emirate. This includes banks operating in special development zones and free zones. The law exempts foreign banks licensed to operate in the Dubai International Financial Centre.
Foreign banks operating in Dubai will be subject to a 20 percent tax on their annual taxable income. However, if these banks pay corporate tax, the amount will be deducted from their total tax liability.
This law is effective from the date of its publication in the official gazette and supersedes Regulation No. 2 of 1996 or any other legislation that may contradict it.
