Clarity has been provided by the UAE Ministry of Finance on income generated by a UAE Free Zone Person that could be eligible for a 0% tax rate In brief Since the release of the UAE corporate tax law on 9 December 2022, UAE Free Zone Persons have been eagerly awaiting the release of the definition of ‘Qualifying Income’. The release of this information now enables UAE Free Zone Persons to determine if they are…
In brief Key highlights The issuance of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (“Corporate Tax law”) on 9th December 2022, provides businesses operating in the UAE with a framework for understanding how the corporate tax regime will impact their business model. The Corporate Tax law is broadly in line with the public consultation document that was issued in April 2022, however, one of the notable changes is the release of…
In brief The UAE Ministry of Finance (“MoF”) announced on 28 April 2022 a public consultation on the proposed federal corporate tax (“CT”) framework. The consultation will run until 19 May 2022 and businesses are encouraged to make their submissions online. The submission link can be found here: https://www.mof.gov.ae/en/resourcesAndBudget/Pages/Corporate-Tax-Submission-Public-Consultation.aspx It should be noted that the content of the public consultation document is not intended to reflect the final view of the UAE government. Therefore, the…
In brief The UAE Ministry of Finance (“MoF”) yesterday announced the introduction of a corporate tax (“CT”) regime that will apply to businesses. It will become effective for financial years starting on or after 1 June 2023. The headlines are that the tax rate will be 0% for taxable income up to AED 375k and 9% on taxable income above AED 375k. Large businesses (expected to be those with revenue above EUR 750m) may be…