Corporate Tax

The UAE has been a global financial center and a prominent business hub in the Middle East that offers multiple benefits to businesses and foreign investors. One of the biggest incentives included the ‘nil’ tax on profits earned in the country, with only a few exceptions. In December 2022, the UAE government announced the introduction of a Federal Corporate Tax (CT law) that came into effect on June 1, 2023.

As per the new framework of UAE Corporate Tax, a 9% taxation rate has been set for annual taxable income of above AED 375,000 for companies that do not meet the conditions for Qualifying Free Zone Persons (QFZPs). Businesses operating within Free Zones, i.e., QFZPs, can still enjoy a 0% tax rate on qualifying income. However, to be eligible for this benefit, they must meet the relevant conditions set by the tax authorities. Any non-qualifying income of QFZPs is taxable at 9%.

If you are a business owner operating in a Free Zone and want information on how these new changes in the Corporate Tax affect your business, then this guide is for you. Read on!

The UAE has been a global financial center and a prominent business hub in the Middle East that offers multiple benefits to businesses and foreign investors. One of the biggest incentives included the ‘nil’ tax on profits earned in the country, with only a few exceptions. In December 2022, the UAE government announced the introduction of a Federal Corporate Tax (CT law) that came into effect on June 1, 2023.

As per the new framework of UAE Corporate Tax, a 9% taxation rate has been set for annual taxable income of above AED 375,000 for companies that do not meet the conditions for Qualifying Free Zone Persons (QFZPs). Businesses operating within Free Zones, i.e., QFZPs, can still enjoy a 0% tax rate on qualifying income. However, to be eligible for this benefit, they must meet the relevant conditions set by the tax authorities. Any non-qualifying income of QFZPs is taxable at 9%.
If you are a business owner operating in a Free Zone and want information on how these new changes in the Corporate Tax affect your business, then this guide is for you. Read on!