From June 2023 On October 08, 2021, the UAE announced to implementation and reform of its national Tax Framework and introduce Corporate Tax with a minimum rate of 9% from June 01, 2023. Therefore, First Financial Tax Year for corporates in UAE will be from June 01, 2023, to May 31, 2024.

Corporate Tax in UAE is defined as a direct tax levied at the business’s net profits. As we advance, businesses in UAE could be required to evaluate the effect of the approaching guidelines to their commercial enterprise and adoptvital compliance requirements. On this note, the UAE Tax Authorities have already said that non-compliance will translate to crippling penalties.

At Madina Accountants, our humble & supportiveprofessionalsallow space and techniques to take care of corporate tax compliance as well as structure the accounting in such a way that businesses do not have to pay unnecessary tax figures that suppose to be saved.

Corporate Tax Rates for the Business will be calculated under the following rules:

1 – Taxable Net Income up to AED 375,000/- Corporate Tax Rate 0%
2 – Taxable Net Income more than AED 375,000/- Corporate Tax Rate 9%

In case of Multi-nationals with revenue globally exceeding Euro 750 million, the corporate tax rate may differ to greater rate. The exact rate that will be calculated on such large multinationals is still yet to be announced.

MAINLAND OR FREEZONE:

Whether business is a freezone establishment or a mainland company. The corporate tax is liable on all the establishments in the UAE. All business in the UAE is required to get register and file the corporate tax return.