The UAE Ministry of Finance has announced that it will introduce a federal corporate tax on business profits effective for financial years starting on or after 1st June 2023.
What is corporate tax?
UAE's Corporate Income Tax or Business Profits Tax is a federal direct tax levied on profits of corporations, it will be chargeable on taxable income, which is the profit reported in businesses financial statements after some exceptions and adjustments.
Public Consultation on UAE's Corporate Tax Regime
The UAE Ministry of Finance (MoF) recently published a public consultation paper on the Corporate Income Tax (CIT) to outline policy background and key principles of the proposed corporate tax regime, and to obtain input from the business community and other interest parties.