Corporate Tax Consultants in Abu Dhabi

Corporate tax will be implemented in Dubai on June 1, 23. The law says that taxed people or businesses will have to pay a 9% corporate tax starting on or after June 1, 2023, when their first financial year starts.

Since it was announced, there has been a lot of talk about it among business owners and tax experts. With this news, UAE is about to become the fourth GCC country to put a federal corporate tax in place.

The goal of putting a federal corporate tax in place in UAE is to make the country an even better place for businesses and investments and to speed up the country's strategy goal of growth and change. Also, the idea of a corporate tax helps meet international standards for tax openness and keeps bad tax practices from happening.

Since corporate tax is a new thing in Dubai, it is important for companies to understand what it is and how it works. We've tried to answer some of the most popular questions about corporate tax.

Corporate tax services

Uncover the intricacies of corporate taxation in Dubai through our directory. We bring you a curated selection of corporate tax services that cater to businesses navigating the financial landscape of the city.

Delve into our listings for corporate tax services in Dubai, where experts offer valuable insights and guidance. Navigating tax regulations can be complex, and these services help businesses navigate the maze with precision.

Our directory extends beyond Dubai's borders to encompass corporate tax services across the UAE. These services aid businesses in managing their tax responsibilities, ensuring compliance with local regulations.

Explore our directory for corporate tax services that provide strategic insights, optimize tax planning, and streamline financial operations. Whether you're a start-up or an established enterprise, our listings connect you to experts who understand Dubai's corporate tax landscape.

What is the corporate tax in Dubai?

Corporate tax is a type of direct tax that is paid by companies and other business units based on their net income or profit. It is also called "Corporate Income Tax" or "Business Profits Tax" by most people.

In simple terms, it is a tax that is paid by companies on their net profits. Companies have to pay a certain amount of their profits as tax.

Who in the Dubai should pay corporate tax?

Corporate tax applies to all companies whose net taxable profit is more than 375,000 AED. These businesses must pay a certain amount of their net profit as corporate tax.

How much is the corporate tax rate in the Dubai?

The corporate tax rate is 9% of the businesses' net profits. In order to help small companies and new businesses get started, the corporate tax rate will be 0% if the net profit is less than 3,75,000 AED.

When will the federal corporate tax be put into place in Dubai?

The implementation date of the corporate tax was the beginning of the fiscal year beginning on or after June 1, 2023. With our directory, you can explore a comprehensive range of corporate tax services in Dubai, assisting businesses in navigating the new tax landscape.

When will the government make the corporate tax bill public?

The corporate tax law was already made public on December 9, 2020. The Dubai corporate tax is explained in "Federal Decree-Law No. 47 of 2022," which can be found on their website. You can get a copy of the Dubai corporate tax law by going to the website for the Ministry of Finance.

What kinds of businesses or income don't have to pay corporate tax?

Given that the minimum amount of money a business can make is 3,75,000 AED, all companies that make more than that amount have to pay the corporate tax. But corporate tax doesn't apply to all businesses or wealth. Here is a list of companies that don't have to pay corporate tax on their income:

People will not have to pay a corporate tax. So, corporate tax won't be charged on income from jobs, real estate, stock purchases, and other personal sources that don't come from a trade or business in the Dubai.

Not applicable to foreign companies who do not do business in Dubai

Tax breaks for corporations are currently given to businesses in free zones that follow all the rules. This will continue.

UAE businesses don't have to pay corporate tax on capital gains and income they get from qualified shares.

Not applicable to intragroup deals and restructurings that meet the requirements

How is corporate tax in Dubai calculated?

In Dubai, corporate tax is equal to 9% of a company's net profit as shown in its financial records. Only if the taxable net profit is more than 375,000 AED will the 9% corporate tax be paid. In other words, there is no tax on net income up to 3,750,000 AED.

For instance, if the net profit is 4,75,000 AED, the corporate tax will be 9,000 AED (4,75,000 - 4,75,000 x 9/100).