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Corporate Tax

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Corporate Tax in UAE

What is Corporate Tax in UAE? The Introduction of Corporate Tax will be effective from 1 June 2023 with a standard rate of 9% for businesses earning above AED 375,000. The UAE corporate tax law includes world-class taxation practices focused to develop the country’s economy, helping businesses to meet international standards, and preventing illegal tax practices.

Corporate Tax Rates in UAE:

Following are the Corporate Tax Rates in UAE for businesses:

  • 0% corporate tax rate applies to taxable income up to AED 375,000
  • 9% corporate tax rate applies to taxable income over AED 375,000
  • 15% corporate tax rate applies to all multinational corporations subject to OECD Base Erosion and Profit-Sharing laws that belong within Pillar 2 of the BEPS 2.0 framework, i.e. combined worldwide revenues in excess of AED 3.15 billion

Corporate Tax UAE start date

The CT will be applicable for financial years starting on or after 1 June 2023.

  • Any company that adopts a fiscal year starting on 1 June 2023 and ending 31 May 2024  will be subject to CT starting 1 June 2023. The first tax return filing is likely to be due towards the end of 2024.
  •  Any company that adopts a calendar year starting 1 January 2023 and ending 31 December 2023 will  be subject to CT starting 1 January 2024 and filing is likely to be due towards mid-2025. 

How is the Corporate Tax in UAE is Calculated?

You already know that profit up to AED 375,000 is charged 0%

Suppose the profit above AED 375,000 = 400,000 , then 400,000-375,000=AED 25,000 at 9% becomes AED 2,250

Corporate Tax for the financial year is  AED 2,250

Profits below or up to AED 375,000 will not be subject to 9% corporate tax in UAE

Corporate Tax Services in UAE

Pegasus Accounting Firm are covering all the elements of Corporate Tax. Our highly professional and experienced corporate tax consultants will assist you in implementing corporate tax strategies in the most effective way. Pegasus Accounting Firm is offering the following Corporate Tax Services in UAE:

  • Corporate Tax Assessment
  • Corporate Tax Registration 
  • Corporate Tax Return Filing 
  • Corporate Tax Accounting
  • Corporate Tax Compliance
  • Corporate Tax Consultancy

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