The UAE Corporate Tax (CT) is a direct tax imposed on the net profit of businesses, as per Federal Decree No. 47 of 2022 on Taxation of Companies and Businesses. This regulation applies from the first financial year beginning after June 2023.
Corporate tax is a direct tax levied on the net profits of businesses operating in the UAE. The key objectives of implementing corporate tax include:
✔ Strengthening the UAE’s position as a global business hub
✔ Accelerating economic development and transformation
✔ Ensuring compliance with international tax transparency standards
Certain businesses and transactions are exempt from UAE corporate tax:
🚫 Companies engaged in natural resource extraction – These remain subject to Emirati corporate tax and are excluded from the new CT regime.
🚫 Dividends & capital gains – Income from eligible shareholdings is not taxable.
🚫 Intragroup transactions & business restructurings – Provided they meet the eligibility criteria, such transactions are exempt.
Additionally, CT does NOT apply to:
✔ Personal income, wages, and other employment earnings
✔ Interest and income from bank deposits or savings plans
✔ Dividends, capital gains, and investment income of foreign investors
✔ Real estate investments made by individuals in a personal capacity
Corporate Tax Rates in the UAE
As per the Ministry of Finance, the corporate tax rates are structured as follows:
💰 0% – For taxable income up to AED 375,000
💰 9% – For taxable income above AED 375,000
💰 Variable tax rates – For large multinational companies that meet specific OECD Base Erosion and Profit Shifting (BEPS) Pillar 2 criteria
