Unlock the latest UAE corporate tax updates. Learn about accounting standards, penalties, and tax rates. Stay compliant and thrive in the UAE business landscape.
The new corporate tax (CT) regime in the UAE is applicable from June 1, 2023. The main highlight is that businesses are now taxable for their profits. The standard CT rate is 9%; however, profits of up to AED 375,000 are taxable at a 0% rate. Resultantly, the standard rate…
Tax evasion and tax avoidance are two concepts widely used in taxation. Businesses or even individuals can save their tax liabilities through various techniques that are either tax evasion or tax avoidance. Even though these involve saving tax liabilities, there is a massive difference in terms of legality and ethical…
What is a Tax Deduction or Deductible Expenditure? A tax deduction (or deductible expenditure) is an allowable expense that a business can claim to reduce its overall tax liability. These expenses reduce the income that is subject to taxation and thus decrease the overall tax liability of the business. These…
The UAE is implementing the corporate tax on June 1, 2023. In order to remain attractive for businesses, the UAE has set the standard rate of corporate tax at 9%. However, this 9% rate only applies to businesses that have taxable profits of over AED 375,000. Businesses with taxable profits…
Understanding Corporate Tax in the UAE: Your FAQs Answered 1. What is corporate tax, in simple words? In simple words, “corporate tax” refers to a type of tax that applies to the profits of companies or corporations. It is a tax that a business pays on its income after deducting…
From June 1, 2023, the UAE is going to introduce corporate tax. Under the current guidelines, businesses that earn taxable profits of over AED 375,000 will pay 9% corporate tax. However, businesses with annual taxable income of less than AED 375,000 will have 0% corporate tax. In order to become…
The UAE has always been famous for its business-friendly policies. These policies attracted a heavy amount of foreign investment from large multinational corporations and investors. However, in order to diversify income sources other than tourism and oil, the UAE is implementing a new corporate tax (CT) from June 1, 2023.…