Dubai – February 1, 2022:

The Ministry of Finance has announced that the UAE will introduce a federal corporate tax on business profits effective for financial years starting on or after June 1, 2023. With a standard statutory tax rate of 9 percent, the UAE corporate tax regime will be amongst the most competitive in the world.

The Ministry also confirmed that there will be no tax on profits of up to AED 375,000, in a move to support small businesses and startups.

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.

No corporate tax will apply on personal income from employment, real estate and other investments, or any other income earned by individuals that do not arise from business or other forms of commercial activity.

UAE businesses will be given sufficient time to prepare for the introduction of corporate tax. The Ministry of Finance will issue further information on the new tax regime toward the middle of the year to help businesses get ready.

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