UAE issues federal decree law on 9% corporate tax
The new law would see businesses subjected to the UAE corporate tax from the beginning of the next financial year, starting on or after June 1, 2023.
The Ministry of Finance of UAE on Friday said it has issued the Federal Decree-Law on Taxation of Corporations and Businesses. The tax regime will levy a standard rate of 9% for taxable profits exceeding Dh375,000.
According to Khaleej Times, profits up to and including that threshold will be taxed at a 0% rate to support small businesses and startups.
The new law would see businesses subjected to the UAE corporate tax from the beginning of the next financial year, starting on or after June 1, 2023.
The newly introduced law is a milestone for the UAE in building an integrated tax regime that supports its strategic objectives and enhances its global economic competitiveness.
The law also aims to impact the national economy with sufficient flexibility to deal with and support international financial systems within the framework of the UAE’s established partnerships.
The corporate tax law is in line with the UAE’s support for the OECD Inclusive Framework on Base Erosion and Profit Shifting, which promotes its commitment to introducing a global minimum tax for multinationals, enhancing tax transparency, and preventing harmful tax practices.
Edited by Suman Singh
