Corporate Tax in UAE - Elevate Accounting & Auditing
                     CORPORATE TAX IN UAE
CORPORATE TAX IN UAE- AN 
OVERVIEW
 The United Arab Emirates, which is abode to the significant corporate 
gateway of Dubai, will continue to have one of the lowest corporate tax rates 
in the world. This proposal stems from the UAE's intention to comply with 
international tax rules, reflecting similar efforts in other Gulf nations, while 
reducing regulatory burdens for UAE firms and protecting small businesses 
and start-ups.
 On Friday 9th December 2022, UAE announced the much-awaited 
Corporate Tax Law vide Federal Decree-Law No. 47 of 2022. The law provides 
a legislative basis for the implementation of Federal Corporate Tax at the 
rate of 9% effective for financial years commencing on or after 1st June 2023. 
       CORPORATE TAX RATES IN UAE
The announced UAE Corporate Tax regime introduces a tier system with 3 rates:
 All annual taxable profits that fall under AED 375,000 shall be subject to a 
zero rate.
 All annual taxable profits above AED 375,000 shall be subject to a 9% rate.
 ALL MNEs that fall under the scope of Pillar 2 of the BEPS 2.0 framework (i.e. 
consolidated global revenues in excess of AED 3.15 billion) shall be subject to 
different rates as per OECD Base Erosion and Profit-Sharing rules.
     SCOPE OF CORPORATE TAX IN 
UTheA UEAE has introduced a federal tax system that is applicable to all 
businesses and commercial activities operating within the seven 
emirates. However, there are certain exceptions:
 Businesses operating in the extraction of natural resources. These will 
continue to be subject to the tax decrees issued by the respective 
Emirate.
 Individuals earning income in their personal capacity (i.e. salary, 
investment income) as long as the income-generating activity does 
not require a commercial license.
 Businesses registered in Free Trade Zones provided they comply with 
all the regulatory requirements, and do not conduct business with 
Mainland UAE.
TAXABLE PERSONS-CORPORATE 
TAX IN UAE
 Natural persons carrying on business/commercial activities (includes 
sole establishments, individual partners in an unincorporated 
partnership).
 Legal Persons (LLC., PSC, PJSC, other entities legally incorporate in 
UAE as well as foreign entities having a permanent establishment in 
UAE.
EXEMPTED PERSONS-CORPORATE TAX IN UAE
 Natural resource extraction & Persons involved in specified non-
extractive activities in the country are exempt from 
Corporate Tax in UAE.
 Other exemptions are available to organizations such as government 
entities, government-controlled entities, pension funds, investment 
funds, and public benefit entities due to their vital importance and 
contribution to the economy of the UAE.
CHOOSE ELEVATE FOR CORPORATE 
TAX IN UAE
With the assistance of Corporate Tax Consultants in Dubai having exceptional experience in 
local and international taxation, the transition to corporate tax compliance will be hassle-
free. Our Elevate Team of expert tax consultants can help you maintain your accounting & 
financial records to optimize your liability of taxes on corporate income.
Our team of experts can help you assess the challenges and opportunities UAE Corporate 
Tax brings.
Corporate Tax Consultancy Services.
Corporate Tax Training and Awareness.
Corporate Tax Registration Services.
Preparation and filing of Tax Returns.
Representation Services before tax authorities.
If you have not yet considered the impact of Corporate Tax in the UAE 
on your business, connect with our tax experts for a free 
consultation. We can guide you to be 100% ready to comply with 
Corporate Tax in UAE once it is effective.
WhatsApp No: +971 561672533
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Visit: https://elevateauditing.com/