The UAE is going to introduce Corporate Tax in UAE starting June 2023. The Ministry of Finance has announced that 9% Corporate Tax will be introduced on Business Profits from the Financial Year staring on or after 1st June 2023. But there will be no Tax on Profits of up to AED 375,000. Personal Income from Employment, Real Estate and other Investments as well as Income earned by individuals that do not arise from Commercial activity will not be taxed.
Some benefits of the new Corporate Tax for Businesses would be
- They will only need to file one Corporate Tax Return each Financial Year. They will not be required to make advance tax payments or prepare provisional Tax Returns
- Tax on Capital Gains and Dividends received from qualified shareholdings will be exempt
- Business Groups will be taxed as a single entity. They will get group relief in respect of losses and intra-group transactions and restructuring
- Foreign Tax can be credited against UAE Corporate Tax
- Businesses will not be taxed on Domestic and Cross-Border Payments
It is mentioned that Free Zone businesses which do not have mainland operations will continue to enjoy Corporate Tax incentives. Foreign Investors who do not carry out business in UAE are exempted.
Read the full news at Gulf News
Picture used for illustration only
