UAE Corporate Tax Uncovered: What Every Business Needs to Know

The UAE’s decision to introduce corporate tax marks a pivotal moment in its journey toward economic diversification. This move aligns the nation with global tax standards while maintaining its business-friendly reputation. Here’s what you need to know about corporate tax and how it affects different types of businesses.

A Competitive Tax Framework

Corporate tax is a direct tax applied to the net income or profit of businesses. The UAE’s tax rates remain highly competitive, ensuring that businesses continue to thrive: ? 0% corporate tax rate for taxable income up to AED 375,000. ? 9% corporate tax rate for taxable income exceeding AED 375,000. This framework is designed to support small and medium-sized enterprises (SMEs) while generating revenue from larger businesses.

Corporate Tax by Business Structure

The corporate tax obligations in the UAE depend on your business’s legal structure. Below is a quick comparison of how different structures being taxed:

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The UAE’s corporate tax system strikes a balance between encouraging economic growth and ensuring compliance with global standards. By understanding the obligations tied to their business structure, companies can adapt and thrive in this evolving landscape. For professional guidance, consult with tax experts to ensure your business stays ahead. Contact us at [email protected] or call us at +971 52 979 8169.

This article is drafted by Marco Marazzi , Business Solutions Legal Advisor of Bizzmosis Group.