Corporate tax (CT) is a form of direct tax levied on the net income or profit, also generally called company tax, of corporations and other entities from their business.
Applicable on:
UAE CT will be applicable across all Emirates and will apply to all business (mainland and Freezones) and commercial activities alike, except for the extraction of natural resources, which will continue to be subject to Emirate-level taxation.
Effective Date:
CT will be effective for financial years starting on or after 1 June 2023.
Rates:
✓ 0% up to AED 375,000 or approximately 102,000 US dollars
✓ 9% above AED 375,000
✓ Multinational organizations generating huge revenues above 1.2 billion AED will get a different corporate tax treatment to be announced in due course.
How does CT impact your business?
Tax | Legal | Finance | Systems & Processes
How Can Corporate Group Help You?
We do CT impact analysis in phases as below:
Phase 01: Initial CT Impact Analysis: We do an initial assessment of the anticipated impact of CT on your business
Phase 02: In-depth Analysis: We do an in-depth analysis of the CT implication, and identify restructuring and optimization opportunities that add value and enhance compliance with the applicable laws and regulations.
Phase 03: Post- Implementation: Implement necessary changes to operating systems and documents, finances, legal structure and documents, policies and procedures, operating model, capital structure, tax function, etc
Phase 04: Implementation:
A. Assist with CT registrations and applications for tax groups
B. Preparation and submission of CT returns
C. Documentations
Its great to be prepared in advance!
