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The announcement of introduction of Corporate Tax  in UAE was made in Jan 2022 and the legislation was released in Dec 2022. 

The Corporate Tax (CT) is going to be implemented in UAE from the financial year begins on and after June 2023.

The CT will be applicable on all the legal persons (both residents & non-resident taxable persons), natural persons (conducting any business or business activity i.e. commercial regularly, ongoing and independently) and unincorporated partnership irrespective of ownership (whether Emirati or not). 

There are certain entities which will be exempted from CT as per the law e.g. Government or Government controlled entities. 

Rate of Corporate Tax

- Final Taxable Income (taxable profits) up to AED 375,000 (Annual) - CT 0% (zero rate)

- Final Taxable Income (taxable profits) more than AED 375,000 (Annual) - CT 9%  

Note: The rate of Tax may be different for the entities which are covered under Global Minimum tax (Pillar 2)

As per the law, there would be certain expenses which are not allowed to calculate the taxable income for computation of CT.

The Federal Tax Authority of UAE is the administrative authority for Corporate Tax.