UAE Corporate Tax law

UAE corporate and business tax LAW 47/2022

It’s the first time to implement a law about corporate tax in The united Arab Emirates

We shall explain corporate tax law simply by stating the article and then what we can understand.

Federal Decree-Law No. 47 of 2022

on the Taxation of Corporations and Businesses

 

Article 2 – Imposition of Corporate Tax Corporate Tax shall be imposed on Taxable Income at the rates determined under this Decree-Law, and payable to the Authority under this Decree-Law and the Tax Procedures Law.

Article 3 – Corporate Tax Rate

1. Corporate Tax shall be imposed on the Taxable Income at the following rates:

2. a) 0% (zero percent) on the portion of the Taxable Income not exceeding the amount specified in a decision issued by the Cabinet at the suggestion of the Minister.

3. b) 9% (nine percent) on Taxable Income that exceeds the amount specified in a decision issued by the Cabinet at the suggestion of the Minister.

4. Corporate Tax shall be imposed on a Qualifying Free Zone Person at the following rates: a) 0% (zero percent) on Qualifying Income.

5. b) 9% (nine percent) on Taxable Income that is not Qualifying Income under Article 18 of this Decree-Law and any decision issued by the Cabinet at the suggestion of the Minister in respect thereof. Federal Decree-Law No. 47 of 2022 – Unofficial translation 7 Chapter.

We understand from article 3 three the following interpretation;

 

1 – Any corporation or individual who does not make a profit that the ministerial decree will determine will not be subject to this law.

2 – It also means that the maximum percentage will not come beyond 9 %.

We shall periodically try to explain corporate tax law.

Author: Ezz eldin Othman

To illustrate;

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