New UAE corporate tax rules: Which businesses will benefit from relief?

New UAE corporate tax rules: Which businesses will benefit from relief?

UAE - Finance experts and businessmen in the UAE welcomed the newly announced tax relief that will support small businesses when the nine per cent corporate tax kicks in this June.

Ministerial Decision No. 73 of 2023 — announced on Thursday — specifies that businesses and individuals with revenues of Dh3 million or less can benefit from the small business relief initiative; thus reducing their corporate tax burden and compliance costs.

Kamal Vachani, group director and partner, Al Maya Group, said this is great news for investors that have been eyeing the UAE as their startup launchpad.

“It is quite empowering and inspiring that the Ministry of Finance (MOF) offers this relief to small businesses. This will enhance UAE’s position as an investment hub globally,” said Vachani.

Who will benefit?

Anurag Chaturvedi, CEO of Andersen UAE, said this relief seems to majorly benefit businesses in wholesale and retail trade, restaurants, administrative and support services, repair and maintenance services, other services, etc.

“It is interesting to note that it will only benefit businesses having a taxable income (i.e. adjusted net profit) of more than 12.50 per cent of revenue," he said.

Freelancers with annual revenue up to Dh3 million will also benefit if their business falls in the