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.
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.
- 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