Corporate Tax Reg. & Filing

Home Corporate Tax Reg. & Filing

Corporate Tax Reg. & Filing

The Ministry of Finance on January 2022, announced that they will introduce Federal Corporate Tax based on the net profit of businesses. The tax will become applicable by 1 July 2023 or by 1 January 2024 relying on the financial year followed by the business. Corporate Tax will be applied all over the Emirates. To know more about Corporate Tax in Dubai get in touch with Right Way.

services-1
Scope of Corporate Tax?

Corporate Tax will apply to the following business and individuals,

  • Businesses and individuals conducting business activities under commercial license in UAE.
  • Freezone businesses (Free zone businesses that meet all regulatory requirements and don’t conduct business on UAE’s mainland will continue to benefit from CT incentives under the UAE CT regime)
  • For foreign companies and entities who conduct trade or business in UAE in an ongoing or regular manner.
  • For banking operations.
  • Businesses like real estate management, construction, development, brokerage activities, and agency.
Exclusion from Corporate Tax

There are some rules regarding the exemption of Corporate Tax,

  • Businesses that are engaged in the extraction of natural resources are excluded from Corporate Tax. These businesses will remain subject to the present Emirate Level Corporate Taxation.
  • Businesses in the UAE will be allowed to earn dividends and capital gains from their qualifying shareholdings without having to pay CT.
  • The Corporate Tax will not apply to qualifying intra-group transactions and reorganizations, provided the necessary conditions are met.
Corporate Tax Rate

According to the Ministry of Finance, the Corporate Tax rates are,

  • Approvals from ministry and government departments
  • 0 percent tax up to income AED 375,000
  • 9 percent tax for income above AED 375,000
  • All the multinational companies will have different tax rates based on the specific set of criteria they meet.

It is the responsibility of the Federal Tax Authority to administer, collect, and enforce. To know more about Corporate Tax UAE and its formalities count of Right Way. we have the best experts in the industry to help you and provide all the details regarding corporate tax.