CORPORATE TAX
Corporate Tax in UAE
Corporate Tax in the UAE is a tax imposed on the profits of businesses operating within the country. Effective from June 1, 2023, this tax will apply at a standard rate of 9% for businesses earning above AED 375,000 annually. The UAE’s corporate tax law incorporates world-class taxation practices aimed at economic development, helping businesses meet international standards, and preventing illegal tax practices.
Key aspects of the UAE Corporate Tax:
Implementation Date: The corporate tax will take effect on June 1, 2023.
Tax Rate: A standard rate of 9% will be applied to business profits exceeding AED 375,000.
Economic Development: The tax law is designed to foster economic growth within the UAE by creating a transparent and stable tax environment.
International Standards Compliance: The law ensures that businesses in the UAE adhere to global taxation norms, facilitating international compliance.
Prevention of Illegal Tax Practices: Measures are included to prevent tax evasion and other illegal tax activities, ensuring fair tax practices.
By introducing corporate tax, the UAE aims to enhance its economic landscape, support businesses in aligning with international standards, and maintain a fair and transparent taxation system.