UAE CORPORATE TAX | Dubai VAT Consultants | VAT UAE

UAE Corporate Tax : The Ministry of Finance to introduce federal corporate tax on business profits that will be effective for financial years starting on or after June 1, 2023.

TAX RATES:
9% headline corporate tax rate for taxable income exceeding AED 375,000.
0% Tax rate for taxable income up to AED 375,000 to support small businesses and startups.

Key features: UAE Corporate Tax

• Individuals will not be subject to corporate tax on income from employment, real estate, investment in shares or other personal income related to a UAE trade or businesses. 
• No corporate tax will apply on foreign investors who dont carry on business in the UAE. 
• Corporate tax will apply on the adjusted accounting net profit of the business.
• Free Zone business that meet all the necessary requirements, can continue to benefit from corporate tax incentives. 
• The extraction of natural resources will remain subject to Emirates level corporate taxation.
• No withholding tax will apply on domestic and cross border payments. 
• No corporate tax will apply on capital gains and dividends received by a UAE business from its qualifying shareholdings.
• No corporate tax will apply on qualifying intragroup transactions and restructurings.
• Foreign tax will be allowed to be credited against UAE corporate tax payable. 

Objectives

• Cementing the UAE’s position as a world leading hub for business and investment
• Meeting international standards for tax transparency and preventing harmful tax practices
• Accelerating the UAE’s development and transformation to achieve its strategic objectives