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Corporate Tax


On 31 January 2022, the Ministry of Finance announced that the UAE will introduce a federal corporate tax on business profits that will be effective for financial years starting on or after June 1, 2023 with proposed rates as follows.​

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  • 0% for taxable income up to AED 375,000 to support small businesses and startups

  • 9% for taxable income exceeding AED 375,000

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The UAE CORPORATE TAX regime has been designed to incorporate best practices in UAE and minimize the compliance burden on businesses. CORPORATE TAX will be payable on the profits of UAE businesses as reported in their financial statements prepared in accordance with IFRS, with minimal exceptions and adjustments.

The introduction of CORPORATE TAX will be a game-changer for businesses in the UAE and will require identification of any required changes to their corporate structure, operating model(s), finance / tax function, reporting systems, legal agreements, and transfer pricing policies to ensure compliance with the new UAE CORPORATE TAX regime. It is important that businesses evaluate the impact of the introduction of UAE CORPORATE TAX early on and proactively plan for a smooth implementation.

If you have not yet considered the impact of the UAE CORPORATE TAX on your business and your company’s structure. Kindly get in touch with us today, so we could help you to evaluate your tax position and advice you to what actions need to be taken to make sure your business is ready to comply with the present corporate tax law.

 

  • Impact assessment and advisory: CORPORATE TAX impact assessment could undoubtedly be a time-consuming procedure for your businesses in the UAE and therefore, we can provide guidance and assistance to you with the initial assessment of the anticipated impact of the introduction of CORPORATE TAX on the form/structure and operations of your business to take advantage of the possible tax savings.

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  • Implementation Support: For our clients who are considering implementing CORPORATE TAX and exploring any opportunities that may arise as a result, we can assist with the following services:

    • Implement changes to the corporate structure of your businesses

    • Obtain clarifications / tax rulings

    • Apply for CORPORATE TAX groups / exemptions

    • Amend contracts and other legal agreements

    • Review and implement necessary TP policies

    • Implement system changes / updates

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