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Corporate Tax in UAE is the new federal corporate tax which came into effect from the financial year starting from 1st June 2023 with a standard rate of 9%. The tax applies to taxable profits of more than AED 375,000 (approximately USD 102,000). There is no tax on taxable profits below this threshold. With this UAE has become the 4th country in the GCC to introduce federal corporate tax. Corporate Tax in UAE is remarkably low when compared to other nations, which makes it a favoured destination for companies seeking to establish a business presence in the Middle East. The usual corporate tax rate is 55% for oil firms and 50% for all other businesses. In addition, the UAE has various free-trade zones where businesses could operate tax-free.
FAQ’s about Corporate Tax in UAE
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