Businesses that earn taxable net profit of more than AED 375,000 will be required to pay corporate tax. These include UAE companies that are incorporated or managed and controlled in the UAE, as well as some entities in a free zone.
The CT will be applicable for financial years starting on or after 1 June 2023.
A company or entity whose financial year starts on July 1, 2023 and ends on June 30, 2024 will have to pay the new tax from July 1, 2023.
A company or entity whose financial year starts on January 1, 2023, and ends on December 31, 2023 will have to pay the tax from January 1, 2024.
UAE CT is applicable at the following rates:
Tax departments which are based in-house in companies are often challenged to meet constantly changing requirements. Our experienced professionals will ensure a smooth and seamless transition to the new era of CT regime within the UAE. This way your team’s burden is lessened. Our corporate tax teams are already working on tax impact assessments, transfer pricing reviews, cross-border transaction reviews and planning operational implementation for several businesses in the UAE.
The aforesaid phases in the diagram be changed to as under:
- Phase I: Impact Assessment
- Phase II: Transition Support
- Phase III: Compliance Support
Get an estimate for your desired business in your desired currency in under a minute with this cost calculator.
The corporate tax rate in UAE will be 9%.
Businesses with an annual income of over AED 375,000 will be subject to corporate tax in UAE. Contact us to discuss CT exemptions and to find out Who Will Be Subject to Corporate Tax in UAE.
Free zone businesses that operate within specific zones will be exempt from corporate tax until at least 2069. Contact us to discuss specific Corporate Tax for Free Zone Businesses.