The United Arab Emirates (UAE) has introduced a new corporate tax regime, effective from June 1, 2023. The new regime has a standard rate of 9%, which is one of the lowest corporate tax rates in the world.

The new regime applies to all businesses in the UAE, except for:

• Government entities
• Government-controlled entities
• Businesses engaged in extractive activities
• Businesses engaged in non-extractive natural resource activities

Free zone entities are also exempt from the new regime, but they can choose to opt in.

The new regime has a number of features that are designed to be taxpayer-friendly. For example, there is a AED 375,000 taxable income threshold, below which no tax is payable. There are also a number of deductions and exemptions available.

The new regime is a significant change for the UAE tax landscape. However, it is designed to be simple and easy to comply with. Businesses that are already familiar with the UAE tax system should be able to make the transition to the new regime relatively easily.

What does this mean for your business?

If your business is located in the UAE, you will need to be aware of the new corporate tax regime. The following are some of the key things to keep in mind:

• The standard tax rate is 9%.
• There is a AED 375,000 taxable income threshold, below which no tax is payable.
• There are a number of deductions and exemptions available.
• The new regime is effective from June 1, 2023.

If you have any questions about the new corporate tax regime, please contact Business One Tax and Accounting.

We are here to help you navigate the new corporate tax regime and ensure that your business is compliant.

We have a team of experienced accountants and tax advisors who can help you understand the new regime and ensure that your business is compliant. We can also help you with your tax planning and prepare your tax returns.

Please contact us today to learn more about how we can help you with the new corporate tax regime.

We are here to help you succeed.