The United Arab Emirates (UAE) has implemented a Corporate Tax (CT) regime to diversify its economy and align with international tax standards. Understanding the CT framework is crucial for business operating within the UAE to ensure compliance and optimize tax planning.
Key Highlights
Tax Rates:
0%
for taxable income up to AED 375,000
9%
for taxable income exceeding AED 375,000
15%
minimum top-up tax for large multinational enterprises with consolidated global revenues of at least USD 780 million, effective from January 2025
Exemptions:
Government entities and government-controlled entities.
Business engaged in extractive and non-extractive natural resources activities.
Qualifying public benefit entities and investment funds
Public and private pension or social security funds
Entities wholly owned and controlled by exempt persons
Free Zone Entities:
Business registered in UAE Free Zones can benefit from 0% CT rate on qualifying income, provided they meet specific conditions and do not conduct business with the UAE.