The Corporate Tax Law is officially released

The Corporate Tax Law is officially released

Corporate Tax has been implemented throughout the UAE by Federal Decree-Law n.47 of 2022. All UAE companies are subject to corporate tax rates of 0% and 9%.

The introduction of Corporate Tax is intended to help the UAE achieve its strategic objectives and accelerate its development and transformation.

UAE companies will be required to comply with the new law in the
following ways

Register for Corporate Tax with the Authority and obtain a Tax Registration Number (TRN).

The Corporate Tax Return must be filed and settled within nine months of the end of the relevant Tax Period.

UAE businesses will become subject to UAE Corporate Tax from the beginning of their first financial year that starts on or after 1 June 2023.

Who will be subject to Corporate Tax?

All businesses in the UAE will be subject to the upcoming corporate tax, with the exception of those extracting natural resources, which will remain taxable at the Emirate level. Corporate tax will only apply to foreign entities and individuals who regularly conduct business in the UAE. All activities undertaken by a legal entity will be deemed "business activities" and therefore subject to corporate tax, according to the Federal Tax Authority.

Are you ready for Corporate Tax?

Corporate Tax law announcements and end-of-year financial closings make it more important than ever to keep your books in order.

Our accounting professionals at Zyla Accountants can help you maintain your records, review your past transactions, ensure their accuracy, and prepare your company for its first tax year.

More information can be found here from the Ministry of Finance: https://mof.gov.ae/corporate-tax/