The UAE the corporate tax structure going to be as follows, information obtained is from various sources and purely for information purpose only.
Corporate tax is a direct tax levied on the profits of business entities.
Apart from the UAE, four out of the six GCC countries have corporate tax regimes, ranging from 10 per cent in Qatar, through 15 per cent in Kuwait and Oman, to 20 per cent in Saudi Arabia. Hence a tax rate of 9 per cent in the UAE on business profits from June 1, 2023 makes UAE among most competitive in world.
Until now, UAE’s corporate taxes only applied to banks and insurance companies. They are taxed at 20 per cent.
Individual emirates have already impose a limited corporate tax on enterprises engaged in exploration and production of oil and gas at rates up to 55 per cent. A business that has a financial year starting on 1 January 2023 and ending on December 31, 2023 will become subject to UAE corporate tax from January 1, 2024.
The UAE the corporate tax structure going to be as follows, information obtained is from various sources and purely for information purpose only.
1 .It will Zero percent ( o%) on taxable income of up to UAE Dirhams 375,000 ( US Dollars 102,000 ) in annual profit
2. Nine percent ( 9% ) for taxable income above UAE Dirhams 375,000 ( US Dollars 102,000 ) in annual profit
3. It will be a different tax rate for specified multinationals (having consolidated global revenues in excess of 750 million euros - or Dh3.15 billion - and meeting other conditions.
4. For Free Zones - The 9 percent (%) corporate tax will apply to those businesses within free zones that derive commercial benefits from the Mainland or on shore activities
5. For Freelancers - income earned from activities carried out under a freelance license or freelance permit will be subject above the minimum threshold of Dirhams 375,000 ( US Dollars 102,000 ) in annual profit
6. The corporate tax will not apply on an individual’s salary and other employment income (whether received from the public or private sector)
7. The Federal Tax Authority will be responsible for the administration, collection, and enforcement of UAE’s corporate tax collections.
For more information visit : https://www.tax.gov.ae/en/Corporate%20Tax/vat%20topics%20Corporate%20Tax%20TOPICS/What-is-Corporate-Tax
The proposed UAE corporate tax remains low compared to other low-tax hubs and jurisdictions around the world.
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