In January 2022, Ministry of Finance announced that it will introduce federal Corporate tax (CT)
on the net profits of
businesses. Corporate tax is a form of direct tax levied on the net income or profit of
corporations and other entities
from their business.
According to the UAE Federal Decree-Law No. 47 of 2022 on taxation of corporations and
businesses (the “Corporate Tax
Law”), businesses will become subject to UAE Corporate Tax from the beginning of their first
financial year that starts
on or after 1 June 2023.
Our Corporate Tax Services
- Corporate tax assessment services
- Coporate tax registration services
- Corporate tax return filing services
- Corporate tax accounting services
- Corporate tax audit services
- Corporate tax compliance services
Corporate Tax will apply to:
All businesses and individuals conducting business activities under a commercial licence in the
UAE
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.)
Foreign entities and individuals only if they conduct a trade or business in the UAE in an
ongoing
or regular manner
Banking operations
Businesses engaged in real estate management, construction, development, agency and brokerage
activities
Why is the UAE introducing Corporate Tax?
A competitive CT regime based on international best practices is expected to cement the UAE’s
position as a leading
global hub for business and investment and accelerate the UAE’s development and transformation
to achieve its strategic
objectives.
Introducing a CT regime also reaffirms the UAE’s commitment to meeting international standards
for tax transparency and
preventing harmful tax practices.
