During years Dubai and the UAE had no taxes, a wet dream, then, VAT was introduced, 5%. And as expected, the government then had a taste for it. Now there is talk of introducing a corporate tax in 2023. What is the current status of this? At the moment, nothing is definite, but it is coming!

The date of 1 June 2023 is being pushed forward. Information is available below but is subject to change!

Tax rates

For taxable income up to AED 375,000 – 0%

For taxable income above AED 375,000 -9  %

Different tax rates will be applied for large multinational companies (global income over 750 million Euros/ AED 3.15 billion).

But who or what will not be taxed, at least for now….

  1. No corporate income tax on individual income from employment, property, equity investments or other personal income unrelated to business activity in the UAE.
  2. No corporate income tax is levied on foreign investors not doing business in the UAE.

3.No corporate income tax shall be levied on capital gains and dividends received by a UAE company from its qualifying shareholdings.

4.No corporate income tax is levied on qualifying intra-group transactions and restrictions.

  1. Corporate income tax applies to the adjusted accounting net profit of the company.
  2. Companies in free zones that meet all the requirements can continue to benefit from the corporate tax incentives.
  3. The extraction of natural resources will continue to be subject to corporation tax at the emirate level.
  4. There will be no withholding tax on domestic and cross-border payments.

  9.Foreign tax may be offset against corporate tax payable in the UAE.

  1. Companies can (avail of)  generous rules to carry forward and utilize losses.

We will inform you as soon as we have further information. You can also contact us with any questions you may have at : info@dehoon-dhp.com.

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