Corporate Finance
The federal Corporate Tax (CT) on company net profits will be implemented, according to a January 2022 announcement from the Ministry of Finance. Depending on the business's financial year, either July 1, 2023, or January 1, 2024, will be the start date for the tax. All of the emirates will implement CT.
Hassle-Free Tax PreparationAn overview of
corporate tax
Following the UAE Federal Decree-Law No. 47 of 2022 on Taxation of Corporations and Businesses, businesses will be subject to UAE Corporate Tax beginning with their first fiscal year that starts on or after June 1, 2023. ("Corporate Tax Law").
Corporate tax (CT) - What is it?
A type of direct tax known as corporate tax is assessed on the net profit or revenue generated by corporations and other legal entities
Corporate Tax's goals
Solidify its place as a major international center for trade and investment. Accelerate its growth and transformation to accomplish its strategic goals and reaffirm its dedication to upholding global standards for tax transparency and preventing unfair tax practices.
Scope
- All companies and people operating legally in the UAE with a trade license.
- Businesses located in free zones (The UAE CT regime will keep honoring the CT incentives presently provided to free zone businesses that adhere to all legal requirements and do not have offices on the UAE's mainland.)
- Only foreign organizations and people who regularly or continuously perform trade or business in the UAE are eligible.
- Companies involved in real estate administration, development, construction, agency, and brokerage.
Exemptions from the CT
- A person's salary and other income from employment, whether it comes from the public or private industry
- Interest and other income derived from bank deposits or savings plans by a person
- Dividends, capital gains, interest, royalties, and other investment returns received by an overseas investor
- Individuals investing in real estate in their private capacities
- Dividends, capital gains, and other income people receive from shares or other securities ownership
Moreover, the CT will not apply to
- A person's salary and other income from employment, whether it comes from the public or private industry
- Interest and other income derived from bank deposits or savings plans by a person
- Dividends, capital gains, interest, royalties, and other investment returns received by an overseas investor
- Individuals investing in real estate in their private capacities
- Dividends, capital gains, and other income people receive from shares or other securities ownership
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