The 9% Corporate Tax in UAE has been implemented on companies that generate annual profits exceeding AED 375,000.
Corporate Tax is levied on profits derived from the sale of goods and services for covered persons beginning on or after June 1, 2023. The law addresses the taxation on business revenue made by UAE residents.
This change in the country's tax policy has been designed to foster economic growth and diversification.
Here is everything you need to know:
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Businesses and individuals possessing commercial licenses within the UAE will be subjected to corporate tax.
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Companies operating in free zones can avail Corporate Tax rate incentives upon fulfilling the specified conditions.
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Non-resident individuals will be liable to pay Corporate Tax if their businesses are managed and controlled within the UAE.
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Individuals will be required to register if their business income exceeds AED 1 million.
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Corporate tax in Dubai will be applicable to banking operations, construction, development, real estate management, agency, and brokerage activities.
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Certain entities will be eligible for exemptions from corporate tax.
All UAE companies, regardless of their exemption status, are required to register and file corporate tax returns.
Navigating UAE corporate tax may be a complex and time-consuming task for businesses. On the other hand, companies can efficiently overcome these problems and assure compliance with the UAE's tax legislation by employing the experience of corporate tax experts in UAE. Consultants provide comprehensive help, ranging from professional knowledge and compliance assistance to strategic tax planning and optimization.