“Know yourWORTH then add TAX to it…”

The provisions of FederalDecree-Law No. 47 of 2022 are to be implemented fromJune 1, 2023, onwards. This law is anticipated to assist the strategic objectives of the UAE, speed up its development and transformation, and strengthen its positionas a corporate destination. The restrictions include a 9% tax rate.

Registration Obligations

·      All annual taxable profits above AED 375,000 shall be subject to a 9% rate, and taxable person must register for corporate tax Dubai.

EXEMPTION

·      Government Entity

·      Non-resident (not related to Permanent Establishment)

·      Extractive and Non-Extractive Businesses (subject to meeting certain conditions)

EFFECTIVE DATES

·      The payment and compliance deadline will give tax payers a period of up to 21 months from the beginning of their financial year to prepare for filing and making their tax payments.

**Businesses will be subject to penalties for non-compliance with the UAE CT regime. However, no penalties will be imposed for late registration if it is completed before the due date of filing a first tax return.

To know more click here: https://mof.gov.ae/corporate-tax/