Corporate Tax UAE

It is safe to say that no economy can grow without tax collections where tax is one of major source of income for any government, UAE being the most favorite for the investors and businesspersons around the globe as a business hub.

UAE has Introduced the new tax regime across Emirates.

If we talk about any fair, caring and compassionate society, it is very important to make a contribution for common good. UAE has announced the new Federal Corporate tax on business profits which will effect for financial years starting on or after 1st June 2023.

“Taxes are important, a contribution in economic growth & a responsibility”

Introduction of the new CT regime is to assurance of meeting international standards without implementing invasive tax practices. UAE is going to imply the lowest rate of corporate tax all across the globe on business and commercial activities.

Currently the threshold system seems to function on two layers:

·??????0% tax for business not surpassing the profits AED 375,000.

·??????9% tax for business exceeding the profits AED 375,000.

These above mentioned taxation is applied on all business and commercial activities except the extraction of natural resources which still comes under the Emirate-level taxation. Alongside a lot of businesses will still only entitle to the cooperate tax only like multinationals corporations operating inside free zones.

UAE will still remain the most preferred place for investment purpose for many reasons which include low tax, attractive locations and beneficial regulations.