Averyx Group

CORPORATE TAX IN UAE – AN INTRODUCTION  On 9th December 2022, UAE has released the much-awaited Federal Decree Law No. 47 of 2022 on the taxation of corporations and Other Businesses. The Corporate Tax Law will be effective from 1 June 2023 with a headline rate of 9%. This is the first time a direct tax being implemented in UAE. Unlike Value Added Tax and Excise Tax, Corporate Tax will directly impact the profitability of a business. The new corporate tax regime includes features that represent best practices in international taxation. Here we provide a brief about Corporate Tax and the rationale behind the introduction of Corporate Tax by UAE. What is Corporate Tax Corporate Tax is a direct tax levied on net income or profit of corporations and other businesses. The corporate tax will be payable on the profits of UAE businesses as reported in their financial statements prepared in accordance with internationally accepted accounting standards. Although the net income is the base, t...