This post provides an overview of corporate taxes and how to find a corporate tax consultant. If you are looking for assistance with your corporate taxes in Dubai, contact us today for a free consultation.
Corporate tax in UAE is a type of direct tax applied on the net income or profit of corporations and other businesses. In some jurisdictions, corporate tax is also known as Corporate Income Tax or Business Profits Tax. On January 31, 2022, the United Arab Emirates (UAE) Ministry of Finance announced the implementation of a federal Corporate Tax on business profits, beginning with the financial year beginning June 1, 2023.
The following are the main features of the new UAE federal corporate law
- If your taxable income exceeds Aed 375,000, you’ll have to pay corporate tax. Thus, the relevant company tax rate for taxable income up to Aed 375,000 is 0%.
- For taxable income over AED 375,000, the corporate tax rates are as follows: 9% for taxable income over AED 375,000 and a separate tax rate for major international businesses that meet certain particular criteria.
- For the first time, the new tax regime will be in effect for the financial year beginning July 1, 2023, and ending June 30, 2024. However, businesses with fiscal years beginning January 1, 2023, and ending December 31, 2023, will be liable to UAE corporate tax beginning January 1, 2024.