Accounting & Bookkeeping
Introduction Federal Corporate Tax In Uae From June 2023
Corporate entities will be subject to specific tax rates based on their taxable income. Corporate tax accountant and advisors are crucial in helping businesses understand their tax obligations to ensure compliance with regulatory requirements.
- Taxable incomes exceeding AED 375,000 will incur a corporate tax rate of 9%.
- Taxable incomes up to AED 375,000 will benefit from a 0% tax rate, specifically aimed at supporting small and medium-sized enterprises (SMEs).
APPLICABILITY OF CORPORATE TAX IN UAE TO FREE ZONES
The applicability of Corporate Tax in UAE extends to Free Zones, as mandated by the applicable legislation of the State. This means businesses operating within Free Zones, including financial free zones, will be subject to Corporate Tax regulations.
- Businesses established in Free Zones must register and file Corporate Tax Returns
- corporate tax incentives available to qualifying Free Zone businesses.
- Incentives are maintained for entities adhering to regulatory requirements and not conducting business in mainland UAE.
- These incentives offer businesses a continued pathway for growth and development within Free Zones.
As businesses in Dubai and across the UAE prepare to navigate the corporate tax landscape, seeking guidance from experienced corporate tax accountants and professionals is essential to managing tax liabilities effectively and upholding financial integrity in a rapidly evolving regulatory environment.
