Corporate Tax

Corporate Tax In UAE : Introduction

A corporate tax, also known as CT, is a tax levied on a corporation’s profits. It serves as a significant source of income for the government and is calculated based on the taxable income generated by the corporation. The taxable income of a company encompasses various elements, such as general and administrative expenses, depreciation, marketing and selling expenses, costs of goods sold, research and development costs, and other operational expenditures. The government collects taxes based on these taxable income components to fund its operations and public services.

Importance Of Implementing Corporate Tax In UAE

Corporate tax rates vary significantly across countries, presenting businesses with potential advantages. Paying corporate taxes instead of additional individual income tax can be beneficial, and companies have the flexibility to deduct losses. In the United Arab Emirates (UAE),

  • Corporate tax will be applicable throughout all the Emirates.

  • The UAE aspires to establish itself as a prominent global hub for investment and business.

  • UAE is actively working towards expediting its transformation and development to accomplish strategic objectives.

  • Furthermore, the UAE reaffirms its commitment to meeting international tax transparency standards and preventing any harmful tax practices within the country.

Corporate Tax Rate In UAE

The UAE ministry has announced that UAE Corporate tax will be levied on profit/taxable income at the following rate:

  • There shall be 0% corporate tax for taxable income not exceeding AED 375,000.

  • There shall be a 9% corporate tax for taxable income exceeding AED 375,000.

Applicability Of UAE Corporate Tax

Corporate Tax  will apply to:

Applicability Of UAE Corporate Tax

Corporate Tax  will apply to

01

All individuals and businesses conducting business activities under a commercial license in the UAE.

02

Business engaged in real estate management, development, construction, brokerage activities, and agency.

03

Foreign entities and individuals if they conduct business or trade in the UAE in a regular or ongoing manner.

05

Banking Operations.

Exemption From Corporate Tax In UAE

The following entities are exempted from corporate tax Dubai

How can Amaeia help to Businesses for Corporate Tax Services?

If you haven’t yet considered the implications of Corporate Tax in Dubai, reach out to ebs for a consultation with our tax experts. We can assist you in becoming fully prepared to comply with Corporate Tax once it becomes effective. Our services include:

  • Our tax experts will prepare tax reports and recommendations that align with the regulations outlined by the Federal Tax Authority (FTA).

  • Our team of experienced tax managers will provide tailored tax advice based on your business eligibility and guide you through any challenges related to Corporate Tax.

  • Our professionals will generate comprehensive tax reports that offer precise insights into how the Corporate Tax rate will impact your business operations and transactions.

  • Our expert team will ensure accurate UAE corporate tax reporting through meticulous analysis, ensuring that your corporate tax returns are penalty-free.