The Ministry of Finance has announced that the UAE will introduce a federal corporate tax on business profits that will be effective for financial years starting on or after June 1, 2023.

Businesses will become subject to UAE corporate tax from the beginning of their first financial year that starts on or after June 1, 2023.

The UAE corporate tax regime has been designed to incorporate best practices globally and minimise the compliance burden on businesses.

Businesses and commercial activities to be taxed
The corporate tax will apply to all businesses and commercial activities alike, except for the extraction of natural resources which will remain subject to Emirate level corporate taxation.

With a standard statutory tax rate of 9 percent and a 0 per cent tax rate for taxable profits up to Dh375,000 to support small businesses and startups, the UAE corporate tax regime will be amongst the most competitive in the world.

source : https://www.khaleejtimes.com/