On 9 December 2022, the UAE released the Corporate Tax (CT) law through Federal Decree No.47 of 2022 (CT law) signalling the imminent implementation of a corporate tax, set to take effect on June 1, 2023. The tax regime dictates that a taxable entity or enterprise will be liable to a 9% corporate tax from the inception of their initial financial year, beginning on or after the aforementioned date. Given this context, this memo seeks to offer recommendations on innovative tax models that can enhance corporate compliance through behavioral economic research and use case studies. Specifically, the policy suggestions will prioritize designing tax frameworks that are congenial to corporations while also increasing voluntary tax compliance.
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