شريكك الموثوق للامتثال لضريبة الشركات في الإمارات

Corporate Tax in the UAE is a direct tax levied on the net income or profit of corporations and other businesses. This tax started for business years beginning on or after June 1, 2023.

Key aspects of UAE Corporate Tax:

• Standard Rate: Businesses pay 9% tax on money they earn above AED 375,000 per year.
• Zero Rate: Businesses pay 0% tax on money they earn up to AED 375,000 per year. This helps small businesses and new companies.
• Free Zones: Special business areas called Free Zones may get a 0% rate on certain income and 9% on other income if they follow certain rules.
• Taxable Persons: The tax applies to most companies created in the UAE, foreign companies run from the UAE, foreign companies with offices in the UAE, and people doing business in the UAE who make more than AED 1 million in a year.
• Exemptions: Some groups don’t have to pay this tax, like government organizations, companies that take natural resources from the ground, charity groups, investment funds, and pension funds.
• Financial Year: The tax is calculated based on the business’s financial year.
• Filing Deadline: Businesses must send in their tax forms and pay any tax within nine months after their financial year ends.

The UAE created this tax to get money from different sources, follow international tax rules, and make the UAE a better place for global business.

Yes, private banks operating in the UAE are subject to corporate tax.

Before, Dubai had its own tax just for foreign banks. Now, the Federal Corporate Tax Law applies across all Emirates, including Dubai and special business zones (except for money earned inside the Dubai International Financial Centre or DIFC, which has different rules).

Dubai also made a new rule called Administrative Resolution No. 107 of 2024 about taxing foreign banks in Dubai. This rule explains how Dubai’s own tax works together with the UAE’s federal tax.

Key points regarding the taxation of foreign banks in Dubai:

• Foreign banks in Dubai must pay a 20% tax on their yearly profits under Dubai’s law.
• But they get a credit for the corporate tax they already paid under the Federal Law. This stops them from being taxed twice on the same money.
• The rule explains how to calculate taxable income, file tax forms, and make payments for foreign banks in Dubai.

So, private banks, including foreign banks operating in Dubai (except those only licensed in DIFC for their DIFC income), must pay corporate tax in the UAE. They either pay the federal tax or both the federal and Dubai taxes, with systems to make sure they don’t pay tax twice on the same money.