New UAE Corporate Tax Law From June 2023

Corporate Tax in UAE from 1st June ’23

The much-awaited UAE Corporate Tax Law has been legislated by the United Arab Emirates (UAE), on 09th December 2022, vide Federal Decree-Law No. (47) of 2022, on the Taxation of Corporations and Businesses in UAE.

The UAE Corporate Tax Law provides the legislative basis for the introduction and implementation of a Federal Corporate Tax (“CT”) in the UAE and is effective for financial years starting on or after 1st June 2023.UAE Corporate Tax will be levied at a headline rate of 9% on Taxable Business Income exceeding AED 375,000 Income.

The UAE corporate tax rate may range from 0% to 15% depending on the companies’ profit generation capacity. The introduction of corporate tax is intended to help the UAE achieve its strategic objectives and accelerate its development and transformation.

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UAE Corporate Tax Rates –

The following are the proposed UAE Corporate Tax Rate from june 2023:-

Taxable Income Slab Corporate Tax Rate
Taxable income up to AED 375,000 0%
Taxable income above AED 375,000 9%
Large Multinationals (with consolidated global revenue > AED 3.15Bn(Euro 750mn) Different tax rates (with reference to Pillar 2 of BEPS 2.0)

Taxable Persons under UAE Corporate Tax:

  • Natural persons carrying on business/commercial activities (includes sole establishments, individual partners in an unincorporated partnership).
  • Legal Persons (LLC., PSC, PJSC, other entities legally incorporate in UAE as well as foreign entities having a permanent establishment in UAE.

Exempted Persons under Corporate Tax in UAE:

  • Natural resource extraction & Persons involved in specified non-extractive activities in the country are exempt from Corporate Tax in UAE.
  • Other exemptions are available to organizations such as government entities, government-controlled entities, pension funds, investment funds, and public benefit entities due to their vital importance and contribution to the economy of the UAE.
uae corporate tax 2023

How can Elevate assist you to cope with New Corporate TAX in UAE ?

If you have not yet considered the impact of Corporate Tax in UAE on your business, connect with our tax experts for free consultation.We can guide you to be 100% ready to comply with Corporate Tax in UAE once it is effective.

We offer the following services for corporate tax in Dubai, UAE: –

  • Corporate Tax Consultancy Services.
  • Corporate Tax Training and Awareness.
  • Corporate Tax Registration Services.
  • Preparation and filing of Tax Returns.
  • Representation Services before tax authorities.
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