27th May 2023
WHAT IS CORPORATE TAX?
In June 2023 ministry of finance introduced corporate tax on the net profits of businesses.
corporate tax is applicable to the net profit and it should be filed annually
WHO SHOULD REGISTER FOR CORPORATE TAX?
In June 2023 ministry of finance introduced corporate tax on the net profits of businesses. UAE corporate tax should be registered by all the businesses or entities conducting business or who is having a license to conduct the business, however there is an exemption for corporate tax
WHO ARE EXEMPTED
those businesses who are dealing with extraction of natural resources are exempted
from corporate tax and also corporate tax is exempted to personal income such as
salary, dividends. in short no personal income tax
CORPORATE TAX RATE
corporate tax rate is 9% if the business has net profit above 375,000 per annum
and importantly businesses having up to or less than 375,000 net profit per annum will not be taxed for 9%. will be filed for 0% per annum
Yes, a Free Zone Entity can enjoy a 0% corporate tax rate provided they have not elected to pay the standard UAE corporate tax rate of 9%. only if they are not conducting any businesses in mainland, however every freezone entity should register for corporate tax
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