Do you have following questions regarding Corporate Tax?
- What is Corporate tax in UAE?
- Who is exempt from Corporate tax in UAE?
- What is the Corporate tax rate in UAE?
- Do I have to register for Corporate tax if my supplies are below threshold?
- What is the date of implications of corporate tax in UAE?
- What businesses or incomes are outside the scope of corporate tax?
- How is Corporate tax calculated in UAE?
Look no further we will explain all that is required for you to know about Corporate Tax in UAE.
What is Corporate Tax (CT) in UAE?
Corporate tax is a form of direct tax levied on the net income or profit of corporations and other entities from their business.
What is Corporate Tax rate in UAE?
Corporate tax is levied at 9% on taxable income above 375,000 and at 0% upto 375,000.
Do I have to register for Corporate tax if my supplies are below threshold?
All Taxable Persons (including Free Zone Persons) will be required to register for Corporate Tax and obtain a Corporate Tax Registration Number. The Federal Tax Authority may also request certain Exempt Persons to register for Corporate Tax.
What is the scope of corporate tax in UAE?
Corporate tax will apply to:
- All businesses and individuals conducting business activities under a commercial licence in the UAE.
- For free zone businesses, the UAE CT regime will continue to honour the CT incentives currently being offered to free zone businesses that comply with all regulatory requirements and that do not conduct business set up in the UAE’s mainland.
- Foreign entities and individuals only if they conduct a trade or business in the UAE in an ongoing or regular manner.
- Banking operations.
- Businesses engaged in real estate management, construction, development, agency and brokerage activities.
What is the exemption from corporate tax in UAE?
Below are the rules regarding exemptions from the corporate tax.
- Businesses engaged in the extraction of natural resources are exempt from CT as these businesses will remain subject to the current Emirate level corporate taxation.
- Dividends and capital gains earned by a UAE business from its qualifying shareholdings will be exempt from CT.
- Qualifying intra-group transactions and reorganizations will not be subject to CT, provided the necessary conditions are met.