New UAE corporate tax
To support small businesses and startups, the UAE tax rate from 2023 will be 0% for taxable income below 375,000 dirhams or ($102,000) and 9% for taxable income above that.
For the first time in their history, as of June 1, 2023, the UAE will introduce the “federal corporate tax” that will hit corporate profits.
A competitive corporate tax regime based on international best practices that will consolidate them as a global leader for business and investment and accelerate the UAE’s development and transformation to achieve its strategic goals.
This tax maneuver arises from a governmental need to diversify tax revenue sources, as opposed to those related to gas extraction. However, the desire that has emerged, remains to attract and incentivize foreign investment for multinational companies looking at the Middle East by broadening the pool of potential stakeholders.
- UAE CORPORATE TAX (PDF, 0 bytes)