Sharjah approves UAE's first corporate tax bill for natural resources

The Sharjah Consultative Council (SCC) has approved a bill focused on corporate tax for extractive and non-extractive natural resource activities, marking a significant milestone in UAE legislation.

The draft law aims to regulate taxation on companies involved in the extraction and utilization of natural resources, encompassing mineral extraction and related industries. This move represents the first of its kind in the UAE and forms part of Sharjah's broader strategy to enhance its financial and economic frameworks.

Sheikh Rashid bin Saqr Al Qasimi, Director of the Sharjah Finance Department, highlighted the draft law’s importance in strengthening governance and ensuring compliance with regulatory standards. According to Sheikh Rashid, the initiative is designed to support sustainable development by creating an effective taxation system tailored to Sharjah's economic goals.

The legislation seeks to establish a comprehensive legal framework for economic activities related to natural resources. This structure is expected to boost public revenue streams, thereby financing various development projects across the emirate.

The decision was made during the council’s seventh meeting, held at its headquarters in Sharjah. The session, part of the second regular session of the eleventh legislative term, was chaired by Dr. Abdullah Belhaif Al Nuaimi, Chairman of the Council.