4 days ago

Sharjah announces 20% tax on natural resources companies in new law

Companies in Sharjah engaged in extractive and non-extractive activities of natural resources are now subject to 20 per cent corporate tax, it was announced on Thursday. Extractive companies are those involved in the extraction of raw materials or natural resources, including oil, metals, mineral, and aggregates), processing and utilization by consumers. Non-extractive companies are doing the separation, treatment, refinment, processing, storing, transporting, marketing or distributing of natural resources. The law, passed by Sheikh Dr. Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, stipulates that companies engaged in extractive activities and those involved in non-extractive natural resources are subject to the corporate tax. The corporate tax for extractive companies is as follows: 1. A tax of 20 per cent will be imposed on extractive companies based on the taxable base, following the mechanisms and schedules defined in agreements made between the (Sharjah) Oil Department and the company. 2. The taxable base for companies engaged in extractive activities will be calculated based on the total share of the company from the value of produced oil and gas, in accordance with the formula dividing the total royalty and any other agreed-upon participation in the division between the Oil Department and […]

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