The UAE will introduce a corporate tax:
What is corporate tax?
The concept of corporate tax is a form of direct tax levied on the net income or profit of companies. In some other countries, corporate tax is called “corporate income tax” or “business profit tax.”
The Ministry of Finance has announced its intention to implement the corporate tax next year on or after June 1, 2023 AD, and just as the policy adopted by the state reflects the principles defined as best international practices, a development has been made in the system, taking into account the burdens of compliance on business and trying to reduce them, and since the The UAE is considered as a leading financial center and hub for international business, and one of the first positive effects of the corporate tax system is to assist in investment activity, increase business, and ensure the free flow of capital, trade and finance.
Corporate Tax Rate
The corporate tax system applied in the UAE will be among the most competitive internationally, as the tax will be applied at a basic rate of 9% and 0% to support start-ups and small businesses that achieve taxable profits not exceeding 375,000 AED.
Companies in the UAE will be given enough time to prepare before the tax is applied.