Corporate Tax in the UAE

Overview of corporate tax obligations and exemptions in the UAE as of 2023.

In the UAE, the corporate tax landscape has been evolving. As of October 2023, the UAE introduced a federal corporate tax law that generally imposes a 9% tax on taxable income exceeding AED 375,000. However, there are specific exemptions and considerations:

  1. Free Zone Companies: Many companies operating within designated free zones may benefit from tax holidays or exemptions, provided they comply with free zone regulations and do not conduct business outside the free zone.

  2. Small Businesses: Businesses with taxable income below AED 375,000 are typically exempt from corporate tax.

  3. Types of Income: Certain types of income, such as income from oil and gas activities or from the extraction of natural resources, may be taxed differently or outside the scope of the general corporate tax law.

  4. International Agreements: The UAE has double taxation treaties with various countries, which may influence tax obligations for foreign entities.

It's important to note that tax laws can be complex and subject to change. If you are operating a business or planning to establish one in the UAE, consulting with a local tax advisor or legal expert is highly recommended to ensure compliance and optimize your tax position.

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HalaTax by Finanshels.com offers general UAE tax insights and does not constitute legal, tax, or financial advice.
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