The new UAE Corporate Tax Law
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UAE passes corporate #taxlaw, setting up its implementation for 2023.
With the #implementation of its federal #corporate tax law, the United Arab Emirates will impose a top rate of 9% on all taxable #income over AED 375,000.
On Friday, the #UAE published its federal corporate tax law, which will impose a top rate of 9% on taxable income exceeding AED 375,000.
A #corporatetax rate of 0% will apply to taxable profits below the aforementioned threshold. No corporate tax will apply on salaries or other personal income from employment — be it in the government, semi-governmental, or private sector, the Ministry of Finance said in a statement accompanying the 56-page law that was published on its website on Friday.
Businesses will become subject to the #UAE corporate tax from the beginning of their first financial year that starts on or after June 1, 2023, as previously announced at the start this year.
The Federal Decree-Law No. The law (47) of 2022 on the Taxation of Corporations and Businesses provides the legal #framework for the introduction and implementation of a federal corporate tax in the UAE and is effective for fiscal years beginning on or after June 1, 2023, according to the ministry.
Together with the UAE's extensive network of double tax treaties, it said, "the certainty of a competitive corporate tax regime that adheres to #international standards will cement the UAE's position as a leading jurisdiction for business and investment."
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According to the #ministry, the corporate tax system in the UAE is based on best practices from around the world and incorporates concepts that are widely acknowledged and accepted.
The #diverse #economy of the #UAE and the significance of promoting sustainable development, it said, "put the principles of fairness and equity across sectors at the forefront of the design of the corporate tax regime."
Comparing the UAE to other #financial centers and developed economies around the world, the standard statutory corporate tax rate of 9% places the country favorably.
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