An interface for the latest corporate tax updates in UAE
The UAE government has announced a new federal corporate tax of 9% on net profits excess of AED 375,000.Net profit up to 3,75,000 is tax-free. All annual taxable profits up to AED 375,000 are subject to a zero percent rate. Annual taxable profits exceeding AED 375,000 are subject to a 9% tax rate. The OECD Pillar 2 framework sets different tax rates for multinational corporations to prevent base erosion and profit shifting. If you have any queries regarding the impact of this new tax on your business, our corporate tax UAE team is here to assist you. We offer a range of corporate tax services, including Corporate tax registration, corporate tax assessment, corporate tax audit, corporate tax return filing, and transfer pricing. We can help you optimize your tax position, reduce your tax liabilities, and avoid any penalties or disputes. To find out more about our corporate tax services in the UAE, Contact us today.
corporate tax in UAE, annual taxable profits up to AED 375,000 qualify for a 0% corporate tax rate, while income above this amount is subject to a 9% tax, effective for financial years starting on or after 1 June 2023. In contrast, taxable income below this threshold will be subject to a 0% Corporate Tax rate. It's worth noting that large multinationals companies falling under Pillar Two may potentially face a higher tax rate of 15%. The table below provides a concise summary of corporate tax rates in the UAE:
Tier | Taxable Income | Corporate Tax Rate |
---|---|---|
1. | Up to AED 375,000 | 0% |
2. | Above AED 375,000 | 9% |
3. | Large multinationals Companies with Total annual revenue over EUR 750 million (around AED 3.15 billion) under Pillar Two of the Organisation for Economic Cooperation and Development (OECD) base erosion and profit shifting (BEPS) project. | 15% |
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