The UAE introduced a federal corporate tax (CT) on 1 June 2023. The tax applies to all businesses that are incorporated in the UAE or that have a permanent establishment (PE) in the UAE. The CT rate is 9% for taxable profits of more than AED 375,000. There is a 0% rate for taxable profits of up to AED 375,000.
The CT is calculated on the basis of the taxable profits of a business. Taxable profits are calculated as the total profits of a business, less any allowable deductions. Allowable deductions include expenses incurred in the production of income, depreciation, and provisions.
The CT is due and payable on a quarterly basis. The due dates for the payment of CT are 30 September, 31 December, 31 March, and 30 June.
There are a number of exemptions from the CT, including:
The CT is a significant change to the tax landscape in the UAE. Businesses that are subject to the CT will need to ensure that they are compliant with the new tax laws and regulations.
Key points about the UAE corporate tax:
If you have any questions about the UAE corporate tax, AAA experienced tax professionals will assist you in all possible ways. We would be happy to discuss your specific situation and answer your questions.
