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.
Corporate Tax in UAE is a form of direct tax levied on the net income or profit of corporations and other businesses. Going forward, licensees operating in UAE will be required to assess the impact of the upcoming regulations to their business and undertake the necessary compliance. On this note, the UAE Tax Authorities have already stated that non-compliance will translate to crippling penalties.
01 June 2023
01 June 2024
Corporate Tax Rates are indicated in the below table:
Taxable Income/ Category
Corporate Tax Rate (%)
Taxable income up to AED 375,000
Taxable income over and above AED 375,000
Large multinationals (having consolidated global revenue exceeding EURO 750 million – equivalent to AED 3.15 billion) that meet specific criteria set with reference to “Pillar Two” of the OECD Base Erosion and Profit Shifting Project
Different tax rate
The United Arab Emirates has implemented a federal tax structure that applies to all enterprises and commercial activity throughout the emirates. Let’s look at the scope of corporate taxation given below.
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