Overview of new UAE corporate tax laws, 9% rate, AED 375,000 threshold, and OECD Pillar Two implications. Emphasize compliance need.
The introduction of Corporate Tax (CT) in the UAE, starting June 1, 2023, has transformed the financial environment for companies across the country, particularly in major centers like Dubai and Abu Dhabi.
| Taxable Income | Tax Rate |
|---|---|
| Up to AED 375,000 | 0% |
| Over and above AED 375,000 | 9% |
All Legal types are required to register for Corporate tax, sole establishment companies need to cross AED 1 million to register for corporate tax.
Depending on the financial year of the company the FTA will provide the Corporate tax due date to be filed.
Freezone companies do enjoy 0% corporate tax if they meet certain conditions set by the tax authorities.
If the company does not register for Corporate tax within the given timeframe, the FTA will issue a late Corporate tax registration penalty for the company of AED 10,000.
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