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CORPORATE TAX UAE @ 9% OF NET INCOME

       CORPORATE TAX  FIXES RATE AT 9%  Profit above Dh 375000 from June 1, 2023.

  • The tax will be applicable on companies in UAE from the financial year commencing on or after June 1 ,2023
  • The corporate tax shall be imposed on profits accrued and not on the revenue or turnover of the business.
  • The effective date on which corporate tax will become applicable will vary from business to business based on their financial year.   For example ,Majority of business in UAE do from  January 1st to December 31st ,   in that case UAE corporate tax will be applicable to them from the financial year commencing on January 1st 2024.
  • According to the law ,Natural resource extraction activities are exempted from Corporate Tax  but they are subject to existing emirate level taxation
  • Free zone companies in UAE will be exempt from corporate tax.   which fulfill all conditions specified in the executive Regulation of the UAE Corporate tax Law.
  • The corporate tax shall be imposed on taxable persons who include residents, certain non-residence and free zone persons generating profits over Dh 375000 per annum.
  • All taxable persons are obligated to maintain records and documents for seven years following the end of the tax year.
  • Under the law annual corporate returns will be required to be filled by all taxable persons no later than nine months from the end of relevant tax period .
  • The losses are allowed to carried forward and set off for an indefinite number of years. The tax loses can be set off up to 75% of the taxable income of the year in which such losses are set off .

           #FTA #UAETAX #UAEAUDIT

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