The UAE has implemented a corporate tax regime to align with international standards and diversify its revenue sources. This guide provides an overview of the corporate tax structure, rates, compliance requirements, and implications for businesses operating in the UAE.
Corporate Tax Rate
The UAE has established a tiered corporate tax rate structure:
0% on taxable income up to AED 375,000.
9% on taxable income exceeding AED 375,000.
15% for multinational enterprises meeting specific criteria under the OECD Base Erosion and Profit Shifting (BEPS) framework.
Who is Subject to Corporate Tax?
All businesses and commercial activities within the UAE, except for the extraction of natural resources, which is subject to Emirate-level taxation.
Foreign legal entities and individuals engaged in business activities in the UAE.
The implementation of corporate tax in the UAE represents a significant development in the country’s fiscal policy, aimed at supporting economic diversification and aligning with global tax standards. Businesses operating in the UAE must ensure compliance with the new tax regulations to avoid penalties and ensure smooth operations. By staying informed and seeking professional guidance, companies can effectively manage their corporate tax obligations and continue to thrive in the UAE’s dynamic business environment.