TAX NEWS ALERT: UAE To Introduce Federal Corporate Tax From June 2023

February 4, 2022by Mohammed Rahali

TAX NEWS ALERT: UAE To Introduce Federal Corporate Tax From June 2023

 

Important Notes

— The UAE set to introduce corporate taxes on business profits effective for the financial years starting June 1st, 2023. — The UAE’s statutory corporate tax rate will be 9% for taxable income exceeding AED 375,000. — The UAE’s statutory corporate tax rate remains 0% for taxable income below AED 375,000. — A different corporate tax rate will apply for specified multinationals; having consolidated global revenues in excess of AED 15 billion – and meeting other conditions. — Individuals will not be subject to corporate tax from employment, real estate, and investment in shares, or other personal income not related to a UAE trade or business. — No corporate tax will apply on foreign investors who do not carry on business in the UAE. — Free zone businesses that meet all the conditions can continue to benefit from corporate tax incentives. — No withholding tax will apply on capital gains and dividends received by a UAE business from its qualifying shareholdings. — No corporate tax will apply on qualifying intragroup transactions and restructuring. — Foreign tax will be allowed to be credited against UAE corporate tax payable. — Generous loss transfer utilization rules will be available to businesses. — Lowest corporate tax rate in GCC.

Way Forward?

If you wish to discuss the potential implications of this new corporate tax regime on your business feel free to contact us today on +971 4 221 2602 or contact@wincoreadvisory.com. Wincore specializes in Individual & Corporate Tax Planning, Corporate Services and Fiduciary matters. We provide pragmatic, flexible and efficient solutions to individual entrepreneurs, startup businesses, foreign and local SMEs, multinationals, wealthy international families, HNWIs and UHNWIs. See our factsheet below for a comprehensive overview of the latest UAE Corporate Tax news.  
   
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Mohammed Rahali

Managing Partner

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