What is the new Corporate Law in the United Arab Emirates?

 

Dubai 15.02.2024 - On January 31, 2022, the UAE's tax landscape changed again with the announcement by the Ministry of Finance (MoF) of the implementation of a new federal corporate tax system in the UAE. Its effective date is for tax years beginning June 1, 2023. The United Arab Emirates has introduced the lowest corporate income tax rate in the Middle East, with a general rate of 9% (except Bahrain which still does not have any corporate tax). ​

 

The Corporate Tax (CT) -in Spanish, corporate tax (IS)- is a direct tax applied to the net income of companies or Permanent Establishments (PE) that carry out their business activity in the United Arab Emirates.

 

​This CT aims to consolidate the United Arab Emirates' position as a leading global center for business and investment, accelerating the country's development and transformation to achieve its strategic objectives.

 

​The introduction of a Corporate Tax regime also reaffirms the UAE's commitment to complying with international standards of tax transparency and preventing harmful tax practices. Most countries in the world have a comprehensive Corporate Tax regime, including most countries in the Middle East.

 

​In order to better understand this new Tax and so that you can be aware of this new legislation, the RLD office in Dubai has prepared a document with the points to highlight about this law as well as practical examples. You can download the document explaining the tax by clicking here.