His Majesty A law on corporate taxation for both extractive and non-extractive natural resources in the Sharjah emirate has been issued by Dr. Sheikh Sultan Bin Mohammed Al Qasimi, the ruler of Sharjah and a member of the Supreme Council. According to the law, businesses that deal with extractive resources and those that deal with non-extractive natural resources must pay the taxes outlined in this law.
According to the law, extractive businesses must pay the following corporate tax:
1. In accordance with the procedures and schedules specified in agreements reached between the Oil Department and the company, extractive companies will be subject to a 20% tax based on the taxable base.
2. In accordance with the formula that divides the total royalty and any other agreed-upon participation in the division between the Oil Department and the company, the taxable base for companies involved in extractive activities will be determined by taking the total share of the company from the value of produced oil and gas.
3. Any annual rent, royalties, and bonuses owed for any concession area run by extractive firms will be decided in accordance with the contract that the Oil Department and those companies have signed.
The law states that non-extractive natural resource enterprises must pay the following corporate tax:
1. Depending on the taxable basis for each fiscal year, non-extractive natural resource corporations are subject to a 20% tax.
2. Under the terms of this law, non-extractive natural resource firms’ taxable base is determined by taking their net taxable income and making the following adjustments.
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