Corporate TAX

Corporate Tax is a form of direct tax levied on the net income or profit of corporations
and other businesses. Corporate Tax is sometimes also referred to as <Corporate Income
Tax= or <Business Profits Tax= in other jurisdictions.

WHEN WILL THE UAE CT REGIME BECOME EFFECTIVE?

The UAE CT regime will become effective for financial years starting on or after 1 June 2023
Examples:
A business that has a financial year starting on 1 July 2023 and ending on 30 June 2024 will
become subject to UAE CT from 1 July 2023 (which is the beginning of the first financial
year that starts on or after 1 June 2023)
A business that has a (calendar year) financial year starting on 1 January 2023 and
ending on 31 December 2023 will become subject to UAE CT from 1 January 2024
(which is the beginning of the first financial year that starts on or after 1 June
2023)

WHAT WILL THE UAE CT RATES BE?

The CT rates are:
0% for taxable income up to AED 375,000;
9% for taxable income above AED 375,000;
And,
a different tax rate for large multinationals that meet specific criteria set with reference to
'Pillar Two' of the OECD Base Erosion and Profit Shifting project