According to the UAE Federal Decree-Law No. 47 of 2022 on taxation of corporations and businesses (the “Corporate Tax Law”), businesses will become subject to UAE Corporate Tax from the beginning of their first financial year that starts on or after 1 June 2023.

The Ministry of Finance has recently announced a series of decisions, including Decision number 74 of 2023, concerning the executive regulations of the Federal Law number 28 of 2022 on tax procedures, as well as Decision number 75 of 2023, about the administrative penalties for violations related to the application of the Corporate Tax Law.

According to the UAE Federal Decree-Law No. 47 of 2022 on taxation of corporations and businesses (the “Corporate Tax Law”), businesses will become subject to UAE Corporate Tax from the beginning of their first financial year that starts on or after 1 June 2023.

Corporate tax has been set at a rate of 9% on taxable income exceeding AED 375,000 and a 0% rate on the portion of taxable income below that threshold.

“The new ministerial decision clarifies the conditions under which a person may be considered exempt or cease to be exempt from a different date, as well as other cases that allow the continuation of the exemption status. This includes the presence of an unforeseen or exceptional circumstance beyond the control of the exempt person that could not have been reasonably anticipated or avoided.”