Picture for illustrative purposes only. ARCHIVE

UAE confirms taxable income, profit for corporate tax

The Ministry of Finance (MoF) has published an approved Cabinet decision confirming taxable income threshold for corporate tax in the UAE. Under the new law, businesses will be subject to UAE corporate tax starting on their first financial year beginning on or after June 1, 2023. The tax rate is set at 9 percent and applies to taxable income above Dh375,000. Businesses with income that does not exceed Dh375,000 will not be taxed. “The rates and the threshold have been carefully decided and reflect the fairness and competitiveness of the UAE's Corporate Tax regime,” said Younis Haji Al Khoori, Undersecretary of MoF Al Khoori said a zero percent tax on business profits of not more than Dh375,000 is a “significant indication of our ongoing support for start-ups and small businesses.” A copy of the Cabinet Decision on the Applicable Taxable Income Threshold for Corporate Tax can be found on the Ministry’s website: www.mof.gov.ae. ICA/Expat Media
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