The UAE has officially issued a federal decree-law on taxing business profits.

The new law will start on June 21, 2023 and will see businesses levied with a corporate tax of 9% on profits above AED385,000.

To aid small businesses no tax will be payable on profits up to this amount, but legal experts in the UAE are advising businesses to prepare in advance of the deadline.

UAE tax law – legal view
“Now that the new corporate tax law has been issued, UAE businesses should start assessing how their businesses will be affected and start organising the necessary systems to ensure compliance with the new law,” says Adela Mues, Partner, Global Corporate Group, Reed Smith.

“Corporate tax will become payable by UAE businesses starting with their financial year starting on or after June 1, 2023.

“Certain detail as to the application of the new law is still to be confirmed by Cabinet decision, such as what constitutes Qualifying Income in respect of which the tax incentives granted to free zone companies will apply.

source : https://www.arabianbusiness.com/