TAX NEWS ALERT: UAE To Introduce Federal Corporate Tax From June 2023
— The UAE set to introduce corporate taxes on business profits effective for the financial years starting June 1st,
— 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.
If you wish to discuss the potential implications of this new corporate tax regime on your business
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See our factsheet below for a comprehensive overview of the latest UAE Corporate Tax news.