Corporate Tax in Dubai: Implications for UAE Businesses Under New Legislation
With the enactment of Federal Decree-Law No. 47 on 9th December 2022, the UAE has set the stage for a new Corporate Tax regime commencing on 1st June 2023. The law stipulates a 9% tax rate on taxable profits over AED 375,000, with a 0% rate for lower profits. This structure is designed to support small businesses and startups by minimizing their tax burden. Moreover, the law specifies criteria for UAE free zone entities to qualify for a 0% tax rate. Understanding these changes is vital for businesses to navigate the new tax landscape effectively.