Corporate Tax, also known as Business profits tax, is a form of direct tax imposed on the net income of corporations and businesses. Streamline your corporate tax compliance with our expert guidance. Stay ahead of the game with our comprehensive corporate tax solutions. Minimise your tax liability and maximise your profits with our tailored advice. Let our team of experienced tax professionals take care of your corporate tax needs. Ensure your compliance with UAE tax laws and regulations with our expert support. Gain peace of mind and focus on growing your business while we handle your corporate tax matters.
Corporate Tax in UAE
The Federal Decree-Law No. (47) of 2022on the Taxation of Corporations and Businesses (Corporate Tax Law) was issued by the UAE on 9 Dec 2022, which provides the legislative basis for the introduction and implementation of Corporate Tax in UAE and will be effective for the financial year starting on or after 1 June 2023.
Corporate Tax has been introduced in UAE to solidify the UAE’s position as a leading jurisdiction for business and investment. It will help UAE to achieve its strategic economic goals and accelerate growth and transformation. UAE has grown as an international business hub and financial center, and the Corporate Tax regime has been built from the global and internationally accepted best practices principles.
Corporate Tax applies to
- All businesses and individuals conducting business activities under a commercial license in the UAE.
- Freezone businesses ** Conditions Apply
- Foreign entities and individuals only if they conduct a trade or business in the UAE continuously or regularly.
- Banking operations
- Businesses engaged in real estate management, construction, development, agency, and brokerage activities.
The UAE Corporate Tax will be applicable at the following rates:
| Taxable Income up to AED 375,000 | 0% |
| Taxable Income of more than AED 375,000 | 9% |
Exemptions from Corporate Tax
- Businesses engaged in the extraction of natural resources are exempt from CT as these businesses will remain subject to the current Emirate-level corporate taxation.
- Dividends and capital gains a UAE business earns from its qualifying shareholdings will be exempt from CT.
- Qualifying intra-group transactions and reorganizations will not be subject to CT, provided the conditions are met.
- An individual earnings salary and other employment income, whether from the public or the private sector.
- Interest and other income an individual earns from bank deposits or saving schemes.
- A foreign investor’s income is earned from dividends, capital gains, interest, royalties and other investment returns.
- Investment in real estate by individuals in their capacity.
- Dividends, capital gains and other income individuals earn from owning shares or other securities in their capacity.
Our Experts will assist you in understanding and adhering to the Corporate Tax regulations. Please feel free to contact Us.
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