The United Arab Emirates has issued the federal law on taxation of corporations and businesses.
The Federal Decree-Law No. 47) of 2022 on the Taxation of Corporations and Businesses provides the legislative basis for the introduction and implementation of a federal corporate tax regime in the UAE.
Under the regime, corporate tax will be levied at a headline rate of nine percent on taxable income exceeding AED 375,000. Taxable income below this threshold will be subject to a zero percent corporate tax rate.
The new corporate tax regime is effective for financial years starting June 1, 2023.