The Sharjah Consultative Council (SCC) has created history by adopting a bill promulgating the first corporate tax on natural resources, the first of its kind in the UAE. The bill covers both extractive and non-extractive industries from natural resources, including mineral extraction and other not-yet-related activities.
Key Features of the New Bill for First Corporate Tax on Natural Resources:
- Tax Scope: The law is concerned with the regulation of arms in the taxing of companies engaged in extracting and using natural resources.
- Broad Economic Impact: This includes activities such as mining, oil, gas extraction, and other related sectors.
The Government’s Vision
Sheikh Rashid bin Saqr Al Qasimi, Director of the Finance Department in Sharjah, indicated that it was part of a bigger scheme for improving the emirate’s tax framework, to make proper governance and compliance with modern regulatory standards.
Such legislation will create a solid legislative framework to manage activities connected to natural resources in economic terms. For the purpose of collecting public taxes to finance key development projects in the region, further aiding the public coffers, this bill also states that the fund will be collected from government sources.
The bill was presented for approval by SCC at its seventh meeting at the council’s headquarters in Sharjah. The session was presided over by Dr. Abdullah Belhaif Al Nuaimi, Chairman of SCC, as part of the council’s second regular session in its 11th legislative term.
Indeed, this step launches a new chapter in the diversity of their sources of wealth and the promotion of a sustainable economic future.
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