The UAE government announces the imposition of a new tax of 9% on corporate profits, as of next June
The UAE government is taking a new economic step in order to improve the UAE economy and improve income standards for all citizens in the UAE.
Through Al-Nasr newspaper, we present that report, as companies in the UAE represent a very important economic hub, so the UAE government is working to attract many international companies through important pivotal criteria in order to improve the UAE economy.
The UAE did not depend on the oil or gas field, but has now begun to enter into various fields in order to diversify sources of income, improve national output, and raise the general income rate for all citizens and residents in the Emirates.
In the context of this, the UAE has officially decided to impose a tax of 9% on corporate profits exceeding 375,000 dirhams ($102,000).
The UAE government: Imposing a tax, starting next June, at a rate of 9% on corporate profits
In a related context, the United Arab Emirates announced its intention to impose a tax on corporate income last January, but it did not disclose the percentage.
According to the Emirates News Agency (WAM), a tax law was issued today that will apply to all companies as of June 1, 2023.
In that regard, according to the law, “corporate tax has been set at 0% on the part of taxable income that does not exceed AED 375,000.”
For its part, the Ministry of Finance in the United Arab Emirates said that the zero-to-profit rate of less than 375 thousand dirhams recognizes the important role that startups and small and medium enterprises play in the country’s economy.
For its part, the UAE says a tax rate of 9% will make it one of the most competitive regimes in the world and will maintain its position as a global financial and trade hub.
On the other hand, the law provides for specific exemptions from corporate and income taxes. For example, natural resource extraction activities in the UAE are exempt from corporate tax, but remain taxable at the emirate level.
This comes in addition to other exemptions for government agencies, pension funds, investment funds and public benefit agencies.
