Is it effective that starting June 1, the UAE is introducing a 9% corporation tax? A small revolution!
But still, a few things to nuance because, again, there is a lot of nonsense to read on the internet.
Here are the main points you need to know about this new UAE corporation tax :
- Every company incorporated in the UAE will be subject to corporation tax from the first financial
year beginning on or after June 1, 2023. - Every company must register for corporation tax, including free zone companies.
- The 9% corporation tax will apply to onshore entities and income exceeding a threshold of AED
375,000 annually. - Freezone companies doing business with onshore companies will be subject to a corporation tax of
9% on income above AED 375,000. - But all other free zone companies (who thus do not do business with local companies) still enjoy
0% tax.
But what the future holds, we will have to wait. First, the UAE introduced 5% VAT, then 9%
corporation for local companies… What is next?
And the UAE still remains blacklisted in some countries and does not always have the best
reputation.
There are, of course, alternatives like Bulgaria, where for 35 years there has been a flat
tax of 10% and which is an EU country.
With all your questions, as always, welcome to: info@dehoon-dhp.com!
