The New UAE Corporate Tax regime came  for Financial Years starting on or after 1 June 2023.

1. Applicability – It is applicable on following entities or business, they are:

• juridical persons incorporated in the UAE ,
• foreign juridical persons who effectively managed or controlled in UAE and  operate in the UAE through a permanent Establishment or having a taxable nexus.
• Limited Liability Companies, Private Joint Stock Companies and Public Joint Stock Companies.
• Natural persons will be subject to Corporate Tax only if they are engaged in a Business or Business Activity in the UAE.

2. Tax Rates- Taxable Income of AED 375,000 subject to Corporate Tax at 0% and Taxable Income exceeding AED 375,000 subject to Corporate Tax at 9%.
3. General Legislation

• UAE Corporate Tax Law
• Federal Tax Authority Decisions
• Cabinet Decisions
• Ministerial Decisions
• Guides by FTA, etc.

Examples-

XYZ , an entity having a Financial period starting from 1 July 2023 and ending on 30 June 2024 is subject to UAE Corporate Tax from 1 July 2023 (that is the beginning of the first Financial Year ,starts on or after 1 June 2023).