Corporate Tax

In line with its commitment to the Global Minimum Taxation Regime, UAE recently introduced Corporate Tax and CT will apply equally to all categories of profit and net income reported in the financial statements prepared in accordance with internationally acceptable accounting standards. Corporate Tax coming into force in the UAE landscape catapults the country into being a part of a global financial ecosystem instead of limiting its potential as a tax haven.

The UAE’s Ministry of Finance (MoF) introduced 9% federal corporate tax rate for taxable income exceeding AED 375,000 while businesses with profits up to AED 375,000 will be categorised under 0% corporate tax rate. Federal corporate tax on business profits will be effective for financial years starting on or after 1 June 2023.

The following areas will not be impacted by Corporate Tax in the UAE:

  • Income from employment
  • Income from real estate
  • Income from investment in shares
  • Personal income not related to UAE trade /business
  • Income earned by foreign investors who do not carry-on business in the UAE

As the UAE moves towards creating a transparent economic environment, tax specialists from our team can guide you with Pre-Assessment and Structuring of transactions.

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