14 December 2022
All Taxable Businesses must register for corporate tax and get a corporate tax registration number, including Free Zone Businesses. Some Exempt Businesses may also be asked to register for Corporate Tax by the Federal Tax Authority. Beginning with the fiscal year from June 1, 2023, businesses will be liable to Corporate Tax.
Who are the subjects of the Tax law?
What is the rate of Tax Levied?
Tax will be levied at a rate of 9% on Taxable Income exceeding AED 375,000.
Taxable Income below this threshold will be subject to a 0% rate of Corporate
Tax. Corporate Tax will be charged on Taxable Income as follows:
For Free Zone Business:
2. Exempt if the Ministry of Finance is notified (and
provided certain requirements are met): Natural resource businesses that are
both extractive and non-extractive.
3. If included in a Cabinet Decision: Entities that qualify as Public Benefit Entities
to compliance with specific requirements, exempt if submitted to and accepted
by the Federal Tax Authority: Public or private pension and social security
funds, qualified investment funds, wholly-owned and controlled UAE subsidiaries
of government entities, government-controlled entities, qualified investment
funds, or public or private pension and social security funds.
5. Public or private pension and social security funds,
Qualifying Investment Fund, Wholly-owned and controlled UAE subsidiaries of a
Government Entity, a Government Controlled Entity, a Qualifying Investment
Fund, or a public or private pension or social security fund.
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