April 9, 2022
UAE to debut landmark 9% corporate tax as it awaits FATF grey list decision
The United Arab Emirates is to introduce a 9% corporate tax rate commencing on 1 June 1, 2023, while it awaits the FATF decision on its anti-money launding measures.
The move marks the first ever time it has actioned a federal corporate tax on business earnings.
UAE’s Ministry of Finance said in a statement that the corporate tax will not apply to personal income from employment, real estate, and other investments or to income earned from a business licensed outside of the UAE.
The new corporate tax also does not apply to companies in Emirati free zones unless they conduct their business onshore. Another exception are oil and gas companies, which are subject to their own tax schemes.
