Here are some common questions about Corporate Tax
1.What is Corporate Tax in the UAE?
Corporate Tax is a federal tax levied on the profits of businesses operating in the UAE. It came into effect on June 1, 2023, at a standard rate of 9% for taxable profits exceeding AED 375,000.
2.Who is required to pay Corporate Tax in Dubai?
Corporate Tax applies to all companies and businesses registered in the UAE mainland and free zones (with certain exemptions for qualifying free zone persons).
3.What is the Corporate Tax rate in the UAE?
0% for taxable profits up to AED 375,000.
9% for taxable profits above AED 375,000.
A different rate may apply to large multinational corporations under OECD Pillar Two rules.
4.Are Free Zone companies subject to Corporate Tax?
Yes, but qualifying free zone entities that meet conditions (such as earning qualifying income and not conducting business with the mainland) can still enjoy 0% corporate tax.
5.Are individuals subject to Corporate Tax in Dubai?
No, individual salaries and personal income from employment, real estate, investments, and bank deposits are not subject to corporate tax.
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