Do individuals have to pay Corporate Tax?
General rule As per Cabinet Decision No. (49) of 2023, business owners in the country will be subject to corporate tax only if their combined turnover in a calendar year exceeds Dh1 million (around $272,294). The aim of the decision is to clarify how the corporate tax regime will apply to UAE residents and non-residents. For instance, […]
Adjustments to Taxable income – Explained
Summary on calculation of taxable income Set out below is an illustrative/indicative summary of how Taxable Income will generally be computed for UAE CT purposes: Net accounting profit/(loss) before tax Fair value accounting and capital asset adjustments (subject to election) less/add: unrealised gains/losses less/add: foreign exchange gains/losses Exempt income less: Dividends and profit distributions received […]
Is Corporate Tax applicable on Freezone Persons?
In the UAE, a Free Zone Person is defined as an individual or corporate entity that is licensed to conduct business activities in the UAE free zones. Free zones are designated areas in the UAE that offer a multitude of incentives to foreign investors, including 100% foreign ownership, tax exemptions, and more. These free zones […]
What taxes are applicable in UAE?
Corporate Tax (CT) In January 2022, the UAE Ministry of Finance announced the implementation of Corporate Tax all over the United Arab Emirates. As per the Ministry, the Corporate Tax law will be effective from the 1st of June 2023. The Corporate Income Tax will be applicable on or after 1st June 2023, depending on […]