Corporate Tax in the UAE

Overview of corporate tax obligations and regulations 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 regime that generally applies to business profits. Here are some key points:

  1. Corporate Tax Rate: The standard corporate tax rate is 9% on taxable income exceeding AED 375,000. Income up to this threshold is typically tax-exempt to support small businesses and startups.

  2. Free Zones: Companies operating within certain free zones may benefit from tax incentives or exemptions, depending on the specific free zone regulations.

  3. Business Activities: Certain activities, such as oil and gas extraction and branches of foreign banks, may be subject to different tax rules.

  4. Tax Filing: Companies are required to register for corporate tax and file annual tax returns.

  5. Double Taxation Treaties: The UAE has numerous treaties that can affect tax obligations for international businesses.

It's important to note that tax laws can be complex and subject to change. If you are planning to establish or operate a business 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.
Understanding Corporate Tax in the UAE