Analytics and brochures

Corporate tax has been put into application in the United Arab Emirates starting from 1 June this year. The first tax period for Emirati companies will be the first calendar year or a 12-month period after 1 June for which financial statements are drawn up (articles 57 and 69 of Federal Decree-Law No. 47 (2022) “On the taxation of corporations and businesses” (the “Law on Corporate Tax”)). For most companies, the first tax period will be 2024, and business does not have much time left to prepare for the corporate tax regime in the UAE. Read more in the article of Maria Nikonova, Pepeliaev Group's partner.

Art 3(2)(a) of the UAE Corporate Tax Law (CTL) provides for a 0 percent tax rate for Qualifying Income. Art 18(1)(b) of this Law vests the Cabinet with authority ‘to specify’ Qualifying Income. The Cabinet in Decision No. 55/2023 delegated to the UAE Minister of Finance (the MoF) power to list the Qualifying Activities, i.e. activities which generate Qualifying Income. On 1st June 2023, the MoF released Decision No. 139 with such list.