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.
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
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