The UAE's telecoms operators e& and Emirates Integrated Telecommunications Company, known as du, will start paying corporate tax and royalties to the federal government under a new and simplified structure starting from January 1 next year.
Technology company e&, formerly known as the Etisalat Group, will pay a minimum aggregate amount of Dh5.7 billion ($1.55 billion) in corporate tax and federal royalty, the company said in a regulatory filing to the Abu Dhabi Securities Exchange, where its shares are traded.
The aggregate amount of royalty and corporate tax payable by EITC shall not be lower than Dh1.8 billion a year, du said in a separate bourse filing to the Dubai Financial Market on Tuesday.
The new royalty regime will be effective from 2024 to 2026 in the context of the new corporate tax regime, it said.
The telecoms operators said they have received new guidelines from the government, under which the federal royalty rate of 38 per cent will be applied to the sum of “regulated and non-regulated” UAE net profit.
The 9 per cent corporate tax law will apply to e& from the beginning of next year, it said.
The aggregate annual amount of royalty and corporate tax shall be paid within five months from the end of the fiscal year, it added.
The two operators said their profits attributable to non-controlling interest holders of UAE-controlled entities will be excluded from the royalty calculation.
Profit generated by international entities, dividend distributions, or other profits from international investments that are subject to a local corporate tax, will also be excluded from the royalty calculation.
“We believe that the new royalty structure is more simplified and avoids complexity in the calculation,” e& said.
“Based on our initial assessment, the combined impact of royalty and corporate tax will be neutral to e&’s financials.”
Du said the new royalty regime ensures “clarity” by pegging the calculations solely to net profit.
“Based on our initial assessment, the aggregate amount of corporate tax and royalty under the new regime will not be higher than the royalty under the old regime,” it said.
E&, which has transformed into a technology investment conglomerate over the past few years, reported a 20 per cent jump in its third quarter net income as its subscriber base grew.
Consolidated net profit in the three months up to September 30 increased to Dh3 billion as revenue reached Dh13.4 billion.
E&’s total subscribers climbed to 167 million at the end of September, about five million more than the same period last year.
Du also reported a strong third-quarter as its net profit surged 60 per cent Dh502.37 million.
It posted a 3.7 per cent annual rise in revenue in the July-September quarter to Dh3.29 billion, driven by a 5.7 per cent growth in mobile service revenue to more than Dh1.5 billion.
If you go
The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road.
The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
If you go
The flights
Emirates flies from Dubai to Seattle from Dh5,555 return, including taxes.
The car
Hertz offers compact car rental from about $300 (Dh1,100) per week, including taxes. Emirates Skywards members can earn points on their car hire through Hertz.
The national park
Entry to Mount Rainier National Park costs $30 for one vehicle and passengers for up to seven days. Accommodation can be booked through mtrainierguestservices.com. Prices vary according to season. Rooms at the Holiday Inn Yakima cost from $125 per night, excluding breakfast.
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Other ways to buy used products in the UAE
UAE insurance firm Al Wathba National Insurance Company (AWNIC) last year launched an e-commerce website with a facility enabling users to buy car wrecks.
Bidders and potential buyers register on the online salvage car auction portal to view vehicles, review condition reports, or arrange physical surveys, and then start bidding for motors they plan to restore or harvest for parts.
Physical salvage car auctions are a common method for insurers around the world to move on heavily damaged vehicles, but AWNIC is one of the few UAE insurers to offer such services online.
For cars and less sizeable items such as bicycles and furniture, Dubizzle is arguably the best-known marketplace for pre-loved.
Founded in 2005, in recent years it has been joined by a plethora of Facebook community pages for shifting used goods, including Abu Dhabi Marketplace, Flea Market UAE and Arabian Ranches Souq Market while sites such as The Luxury Closet and Riot deal largely in second-hand fashion.
At the high-end of the pre-used spectrum, resellers such as Timepiece360.ae, WatchBox Middle East and Watches Market Dubai deal in authenticated second-hand luxury timepieces from brands such as Rolex, Hublot and Tag Heuer, with a warranty.
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
