UAE withholding tax will not be applicable on domestic and cross-border payments of any nature under the UAE CT regime.
In case, in-land customers deduct tax at source from sums payable to the taxpayer, such tax deducted at source becomes a tax credit and is deducted from CT due on Net Taxable Income of the taxpayer. It is not going to happen in UAE. In case, a UAE taxpayer were to deduct a certain amount of tax at source from sums payable to one’s vendors, the taxpayer would have had to pay said withholding tax to the FTA along with the CT due on its Net Taxable Income. This is not going to happen in UAE. In other GCC countries such as Oman, taxpayers are required to deduct tax at source on payments to foreign vendors. This will not be the case in UAE.