UAE Corporate Tax

WHAT IS CORPORATE TAX ?

• Corporate Tax can be defined as a direct tax which is levied on the net income of the business and corporate.
• UAE has implemented Corporate Tax from June 01,2023.
• It can be referred as Corporate Income Tax or Business Profits Tax.

'TAXABLE PERSONS' APPLICABILITY FOR CORPORATE TAX:

UAE companies and other juridical persons	Companies that are incorporated or effectively managed and controlled in the UAE
Natural persons (individuals)	Persons who conduct a Business or Business Activity in the UAE as specified in a Cabinet Decision to be issued in due course
Non-resident juridical persons (foreign legal entities)	Persons that have a Permanent Establishment in the UAE (which is explained under Section 8

RATE OF CORPORATE TAX:

If the Taxable Income of the business doesn't exceed AED 375,000, the Corporate Tax is	0 %
If the Taxable Income of the business exceeds AED 375,000, the Corporate Tax is	9 %
If the Taxable Income qualifies as a Free Zone by satisfying the condition, then the Corporate Tax is	0 %
If the Taxable Income doesn't qualify as a Free Zone by satisfying the condition, then the Corporate Tax is	9 %