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UAE is introducing Corporate Tax!

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


Rates

  • 0% Tax rate for taxable income up to AED 375,000 to support small businesses and startups

  • 9% Headline corporate tax rate for taxable income exceeding AED 375,000

Key Features


  • Individuals will not be subject to corporate tax on income from employment, real estate, investment in shares or other personal income not related to a UAE trade or businesses.

  • No corporate tax will apply on foreign investors who do not carry on business in the UAE

  • Corporate tax will apply on the adjusted accounting net profit of the business

  • Free zone businesses that meet all necessary requirements can continue to benefit from corporate tax incentives

  • The extraction of natural resources will remain subject to Emirate level corporation 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

  • Generous loss transfer and utilisation rules will be available to businesses











































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