Effective from financial years starting on or after 1st June 2023
The country’s statutory tax rate will be 9 percent for taxable income exceeding 3,75,000 AED ($1,02,000) and zero tax rate for taxable income up to that amount “to support small businesses and startups”.
Individuals will not be subject to tax on their incomes from employment, real estate, equity investments, or other personal income not related to a UAE trade or business.
No corporate tax will be applied to foreign investors who do not carry on business in the UAE.
Free zone businesses that meet all necessary requirements can continue to benefit from corporate tax incentives.
Extraction of natural resources will remain subject to Emirate Level Corporate tax.
No withholding tax will apply on domestic and cross-border payments.
Foreign tax credit will be allowed against UAE corporate tax payable.
No corporate tax will apply on capital gains and dividends received by a UAE business from its qualifying shareholdings.
No corporate tax will apply to qualifying intragroup transactions and restructurings.
It is to be noted that tax rates can be revisited by the authorities later on as these rates were decided before Pillar 2 finalization and Pillar 2 introduces a global minimum tax rate of 15 percent.
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