Sharjah has enacted a law imposing a 20% corporate tax on companies engaged in both extractive and non-extractive natural resource activities. The taxable base for extractive companies will be determined by their share of produced oil and gas, as outlined in agreements with the Oil Department. Non-extractive companies will calculate their taxable base based on net taxable profits, allowing for deductions such as a 20% annual depreciation of non-current assets.
Tax losses may be carried forward to future periods. Companies must pay the due tax amount to the relevant department according to specified mechanisms and schedules. Penalties apply for late payments. The law also grants the finance department the authority to audit company records and mandates confidentiality of submitted declarations and correspondence.
