UAE corporate and business tax LAW 47/2022
It’s the first time to implement a law about corporate tax in The united Arab Emirates
We shall explain corporate tax law simply by stating the article and then what we can understand.
Federal Decree-Law No. 47 of 2022
on the Taxation of Corporations and Businesses
Article 2 – Imposition of Corporate Tax Corporate Tax shall be imposed on Taxable Income at the rates determined under this Decree-Law, and payable to the Authority under this Decree-Law and the Tax Procedures Law.
Article 3 – Corporate Tax Rate
Corporate Tax shall be imposed on the Taxable Income at the following rates:
a) 0% (zero percent) on the portion of the Taxable Income not exceeding the amount specified in a decision issued by the Cabinet at the suggestion of the Minister.
b) 9% (nine percent) on Taxable Income that exceeds the amount specified in a decision issued by the Cabinet at the suggestion of the Minister.
Corporate Tax shall be imposed on a Qualifying Free Zone Person at the following rates: a) 0% (zero percent) on Qualifying Income.
b) 9% (nine percent) on Taxable Income that is not Qualifying Income under Article 18 of this Decree-Law and any decision issued by the Cabinet at the suggestion of the Minister in respect thereof. Federal Decree-Law No. 47 of 2022 – Unofficial translation 7 Chapter.
We understand from article 3 three the following interpretation;
1 – Any corporation or individual who does not make a profit that the ministerial decree will determine will not be subject to this law.
2 – It also means that the maximum percentage will not come beyond 9 %.
We shall periodically try to explain corporate tax law.
Author: Ezz eldin Othman
To illustrate; More
Consult our Abu Dhabi tax lawyers for corporate, vat, or withholding tax.
UAE Corporate Tax law