UAE to introduce federal corporate tax on business profits | Times of Oman

UAE to introduce federal corporate tax on business profits | Times of Oman

ABU DHABI: The UAE's Ministry of Finance has announced that the UAE will introduce a federal corporate tax on business profits that will be effective for financial years starting on or after 1st June 2023. Businesses will become subject to UAE corporate tax from the beginning of their first financial year that starts on or after 1st June 2023. The UAE corporate tax regime has been designed to incorporate best practices globally and minimise the compliance burden on businesses. Corporate tax will be payable on the profits of UAE businesses as reported in their financial statements prepared in accordance with internationally acceptable accounting standards, with minimal exceptions and adjustments. The corporate tax will apply to all businesses and commercial activities alike, except for the extraction of natural resources which will remain subject to Emirate level corporate taxation. With a standard statutory tax rate of 9 percent and a 0 percent tax rate for taxable profits up to AED375, 000 to support small businesses and startups, the UAE corporate tax regime will be amongst the most competitive in the world. No corporate tax will apply on personal income from employment, real estate and other investments, or on any other income earned