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UAE Corporate Tax Rates
UAE Corporate Taxation holds a crucial position in the world of finance, as it is a direct tax that is imposed on the taxable income of corporations and businesses. It is also sometimes referred to as ‘Corporate Income Tax’ or ‘Business Profits Tax’ in certain jurisdictions. The implications of this tax are far-reaching, making it an essential aspect of every corporate entity’s financial planning and management. A thorough understanding of this tax not only helps businesses navigate the complex regulatory landscape but also ensures their long-term sustainability and growth.
Articles 2 & 3 The United Arab Emirates is implementing a new corporate tax system that will require taxable individuals to pay taxes on their income during a designated tax period.
Corporate Tax Rates:
UAE Corporate Tax Rates apply to qualifying freezone persons at the following rate:
When a Free Zone Person meets certain conditions, it will be considered as a Qualifying Free Zone Person and is eligible for a 0% Corporate Tax rate on its Qualifying Income. The 0% Corporate Tax rate is available to Qualifying Free Zone
- Qualifying Freezone Person
| Taxable Income | Corporate Tax Rate |
| Qualifying Income | 0% |
| Non-Qualifying Income | 9% |
- Other than Qualifying Freezone person
| Taxable Income | Corporate Tax Rate |
| If revenue not exceeeding (375,000) | 0% |
| If exceeding more than (375,000) | 9% |
How to calculate the Corporate Tax rate on revenue?
If business revenue is 500,000 what will be the UAE CT Amount Payable?
| Description | How to Calculate | Description |
| up to AED 375,000 | AED 375,000 0% | Zero |
| More revenue 375,000 | 500,000-375,000 = 125,000*9% | 11250 |
Comments
Hi there! This post couldn’t be written any better! Reading through this post reminds me of my previous room mate!
He always kept chatting about this. I will forward this post to him.
Pretty sure he will have a good read.
Hello Elvia yes you can share with him and your friends as well