UAE Corporate Tax

UAE Corporate Tax

The UAE introduced Corporate Tax as per the Federal Decree-Law No. (47) of 2022. The introduction of Corporate Tax is intended to help the UAE achieve its strategic objectives and accelerate its integration into the global financial ecosystem.

The UAE’s Ministry of Finance introduced a 9% corporate tax rate for taxable income that exceeds AED 375,000. Businesses with profits falling below this threshold will be subject to a 0% corporate tax rate.

The corporate tax rate will be applicable to businesses having financial years beginning on or after 1 June 2023.

Every business has 9 months from the date of financial year-end to file the return, which will also be the deadline for registration.

As per the Ministerial Decision No. 82 of 2023, taxable persons with revenue exceeding AED 50,000,000 and Qualifying Free Zone Persons are required to prepare and maintain audited financial statements.

The Ministerial Decision No. 73 of 2023 allows small businesses to benefit from tax relief if their revenue does not exceed 3 million AED for the relevant tax period and each previous tax period.

The corporate tax law also includes provisions relating to taxable resident and non-resident, participation exemption regime, deductions, exempt income and tax groups.

The implementation of the Corporate Tax Law has given much significance to transactions with related parties and connected persons that should be set at arms-length and abiding by the OECD’s transfer pricing rules.

The introduction of Corporate Tax regime helps to provide UAE with a framework to adopt Pillar Two rules. Until such time the Pillar Two rules are adopted, multinational corporations will be subject to CT under the regular UAE CT regime.

Our team of experts can help you by:

  • Assistance with compliance as per CT Law
  • Assistance for CT Registration
  • Assistance with CT VAT Returns periodically
  • Providing CT Advisory services

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