Corporate Tax
Corporate Tax in UAE
What is Corporate Tax in UAE? The Introduction of Corporate Tax will be effective from 1 June 2023 with a standard rate of 9% for businesses earning
above AED 375,000. The UAE corporate tax law includes world-class taxation practices focused to develop the country's economy, helping businesses to meet international standards, and preventing illegal tax practices.
Corporate Tax Rates in UAE
Following are the Corporate Tax Rates in UAE for businesses:
0% corporate tax rate applies to taxable income up to AED 375,000
9% corporate tax rate applies to taxable income over AED 375,000
15% corporate tax rate applies to all multinational corporations subject to OECD Base Erosion and Profit-Sharing laws that belong within Pillar 2 of the BEPS 2.0 framework, i.e. combined worldwide revenues in excess of AED 3.15 billion
9% corporate tax rate applies to taxable income over AED 375,000
15% corporate tax rate applies to all multinational corporations subject to OECD Base Erosion and Profit-Sharing laws that belong within Pillar 2 of the BEPS 2.0 framework, i.e. combined worldwide revenues in excess of AED 3.15 billion
Corporate Tax UAE start date
The CT will be applicable for financial years starting on or after 1 June 2023.
Any company that adopts a fiscal year starting on 1 June 2023 and ending 31 May 2024
will be subject to CT starting 1 June 2023. The first tax return filing is likely to be due towards the end of 2024. Any company that adopts a calendar year starting 1 January 2023 and ending 31 December 2023 will be subject to CT starting 1 January 2024 and filing is likely to be due towards mid-2025.
Corporate Tax on Free Zones in UAE
A Free Zone company or a Qualifying Free Zone Person can be benefitted from a special Corporate Tax rate of 0% on their "Qualifying Income in UAE"
exclusively. The qualifying income is based on the transactions made by the entities. If the Free Zone Businesses come under the CT regulations for Free Zones as per the UAE CT Regime, they might be subjected to the corporate tax rate of 9%.