Starting from 1 June 2023, a new law called the Corporate Tax Law will be active in the United Arab Emirates. This law will change how companies are taxed by the government. The new rules say that companies will have to pay a tax rate of 9%. The Ecovis experts will give more information about what this means for companies and people who invest in them.
The United Arab Emirates (UAE) is a very important place for businesses because it offers a lot of advantages and benefits to attract companies from other countries. In December 2022, the UAE government made a new law that says businesses need to pay taxes. Before this, businesses didn't have to pay many taxes in the UAE, except for taxes on the money they made from finding oil.
Starting from 1 June 2023, a new law called the Corporate Tax Law will be put into action. This law is meant to help the UAE achieve its goals, grow and change faster, and make it a better place for businesses to come.
The law is like a set of rules that people all around the world agree on and understand. It helps us know what we can expect when it comes to paying taxes. The UAE also wants to follow new rules that many countries are agreeing on, especially when it comes to making big companies pay a fair amount of tax no matter where they operate.
Starting from 1 June 2023, companies in the UAE will have to pay a tax on their profits. The tax rate is 9% for companies that make more than AED 375,000 in profit. But companies that make less than or equal to AED 375,000 won't have to pay any tax. Some small businesses will also have special rules that allow them to pay less tax if their total revenue in the past and current year is less than AED 3 million.
Splitting a business into smaller parts just to avoid paying taxes is not allowed. The most money you can earn without paying any taxes is AED 375,000.
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