iNSIGHTS on Corporate Tax - UAE
Stay up to date with us on impacts of the corporate tax on your business.
- The United Arab Emirates (UAE) has announced plans to impose federal corporation tax from 1 June 2023
- The UAE Corporate Tax rates are:
9% for taxable income above AED 375,000; and
a different tax rate for large multinationals
- UAE Corporate Tax will apply to all UAE businesses, except for the extraction of natural resources, which will remain subject to Emirate level corporate taxation. Foreign entities and individuals will be subject to Corporate Tax only if they conduct a trade or business in the UAE in an ongoing or regular manner.
- UAE Corporate Tax will apply equally to all categories of profits and other (net) income reported in the financial statements prepared in accordance with internationally acceptable accounting standards.
- The Federal Tax Authority will be responsible for the administration, collection, and enforcement of UAE Corporate Tax
- The UAE CT is a Federal tax and will therefore apply across all Emirates
- Foreign entities and individuals will be subject to UAE Corporate Tax only if they conduct a trade or business in the UAE in an ongoing or regular manner
- UAE Corporate Tax will not apply on an individual’s salary and other employment income (whether received from the public or private sector)
As announced on 31 January 2022, the United Arab Emirates (UAE) will introduce a federal Corporate Tax on business profits that will be effective for financial years starting on or after 1 June 2023. On 28 April 2022, the United Arab Emirates Ministry of Finance released a public consultation document on the planned introduction of corporate tax in the UAE.