Dubai is considering to reduce government fees on commercial activities to further enhance the business environment in the emirate following the introduction of a federal corporate tax on business profits, which will be implemented from June 2023.

Dubai’s Department of Finance (DOF) said that is reinforcing its efforts to further improve the supportive, growth-friendly business environment for companies in the emirate.

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This is in the wake of a 9 percent federal corporate tax on business profits announced by the UAE Finance Ministry on Monday.

The new tax regime, which is part of the UAE’s ambitious diversification drive aimed at accelerating its economic growth, will come into effect from January 2023 and the new taxation policy, to be implemented in line with international best practices, marks a significant shift in the UAE’s status as a tax-free haven for investors and corporates.

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Abdulrahman Al Saleh, director-general of the DOF, said the department’s efforts are aimed at enabling businesses to achieve greater success.

The DOF noted in a statement that corporate taxes are systematically applied in many countries around the world to serve government interests and take into account the interests of companies in the long run.