UAE Corporate tax services : His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, has issued the following Decree-Law: In the application of the provisions of this Decree-Law, the following words and expressions shall have meanings assigned against each, unless the context otherwise requires (Federal Decree-Law No. 47 of 2022)
UAE Corporate tax Rate Calculation:
- 0% for taxable income up to AED 375,000;
- 9% for taxable income above AED 375,000
UAE Corporate Tax Services and Applicable Rates
Corporate Tax shall be imposed on Taxable Income, at the rates determined under this Decree-Law, and payable to the Authority under this Decree-Law and the Tax Procedures Law.
- Corporate Tax shall be imposed on the Taxable Income at the following rates:
- 0% (zero percent) on the portion of the Taxable Income not exceeding the amount specified in a decision issued by the Cabinet at the suggestion of the Minister.
- 9% (nine percent) on Taxable Income that exceeds the amount specified in a decision issued by the Cabinet at the suggestion of the Minister.
- Corporate Tax shall be imposed on a Qualifying Free Zone Person at the following rates:
- 0% (zero percent) on Qualifying Income.
- 9% (nine percent) on Taxable Income that is not Qualifying Income under Article 18 of this Decree Law and any decision issued by the Cabinet at the suggestion of the Minister in respect thereof.
Corporate Tax in the UAE
Corporate tax (CT) is a form of direct tax levied on the net income or profit of corporations and other entities from their business. Corporate Tax is sometimes also referred to as “Corporate Income Tax (CIT)” or “Business Profits Tax” in other jurisdictions.
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Example of business tax/UAE Corporate Tax Rate calculation in UAE
|Less : All deduction**||25,000|
|Less : Exempt Amount||375,000|
|Corporate Tax @9% on||9000|
As shown in the table, first the net profit from the financial statement is reduced by deductions as allowed by the corporate rules. Later, the exempt amount of 375,000 is reduced to arrive at the taxable income
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