UAE Federal Corporate Tax:

With the introduction of CT, UAE aims to get benefits of corporate tax regime including but not limited to the  following. Revenue Recognition, Redistribution of Wealth, Economic Stability, Fiscal Policy Tool, Fairness and Equity, Behavioural Incentives, Global Competitiveness and Compliance and Enforcement.

Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (“Corporate Tax Law”) was signed on 3 October 2022 and was published in Official Gazette of the United Arab Emirates (“UAE”) on 10 October 2022. The Corporate Tax Law provides the legislative basis for imposing a federal tax on corporations and Business profits (“Corporate Tax”) in the UAE.

The provisions of the Corporate Tax Law shall apply to Tax Periods commencing on or after 1 June 2023.

Juridical persons (such as corporations) that are incorporated in the UAE or foreign juridical persons that are effectively managed and controlled in the UAE.
Non-resident juridical persons (foreign juridical entities) that have a Permanent Establishment in the UAE.
Non-Resident Persons deriving State Sourced Income.
Non-resident juridical persons that have a ‘nexus’ in the UAE by virtue of earning income from Immovable Property in the UAE.
Natural persons who conduct Business or Business Activities in the UAE and have a Turnover of over AED 1,000,000 per Gregorian calendar year from such Business or Business Activities.