Introduction about Corporate tax in UAE

What is Corporate tax (CT)?

Corporate tax is a form of direct tax levied on the net income or profit of corporations and other entities from their business.
 
Applicability
(a) Individuals who are engaged in a business or business activity in UAE through an unincorporated partnership or sole proprietorship;
(b) Juridical persons incorporated in the UAE;
(c) Juridical persons effectively managed and controlled in the UAE; and
(d) Foreign juridical persons that have a permanent establishment in the UAE.
 
Corporate Tax Rate

• 0 per cent for taxable income up to AED 375,000
• 9 per cent for taxable income above AED 375,000

 
Exemptions from Corporate Tax

• Businesses engaged in the extraction of natural resources
• Dividends and capital gains earned by a UAE business from its qualifying shareholdings
• Qualifying intra-group transactions and reorganizations 

 
Additionally, CT will not apply to:

• an individual earnings salary and other employment income
• interest and other income earned by an individual from bank deposits or saving schemes
• a foreign investor’s income earned from dividends, capital gains, interest, royalties and other investment returns
• investment in real estate by individuals in their personal capacity
• dividends, capital gains and other income earned by individuals from owning shares or other securities in their personal capacity.