Corporate TAX 9%
Corporate Tax is a form of direct Tax levied on the net income or profit of corporations and other entities from their business.
Effective Date
The Corporate Tax will be applicable for financial years starting on or after 1 June 2023.
Scope of Corporate Tax
The United Arab Emirate introduced a federal Tax structure applicable to all business operation and commercial activity carrying out throughout the emirates.
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All businesses and individuals conducting business activities under a commercial licence in the UAE
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Free zone businesses (The UAE CT regime will continue to honour the CT incentives currently being offered to free zone businesses that comply with all regulatory requirements and that do not conduct business set up in the UAE’s mainland.)
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Foreign entities and individuals only if they conduct a trade or business in the UAE in an ongoing or regular manner
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Banking operations
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Businesses engaged in real estate management, construction, development, agency and brokerage activities.
Exemptions from Corporate Tax
Below are the rules regarding exemptions from the corporate tax.
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Businesses engaged in the extraction of natural resources
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Dividends and capital gains earned by a UAE business from its qualifying shareholdings
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Qualifying intra-group transactions and reorganizations
Corporate Tax Rates
As per Ministry of Finance, Corporate Tax rates are:
Registering, filing and paying Corporate Tax
All Taxable Persons (including Free Zone Persons) will be required to register for Corporate Tax and obtain a Corporate Tax Registration Number. The Federal Tax Authority may also request certain Exempt Persons to register for Corporate Tax.
Taxable Persons are required to file a Corporate Tax return for each Tax Period within 9 months from the end of the relevant period. The same deadline would generally apply for the payment of any Corporate Tax due in respect of the Tax Period for which a return is filed.
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