Corporate Tax is a form of direct tax leviedon the net income or profit of corporations and other businesses. Corporate Tax is sometimes also referred to as “Corporate

Income Tax” or “Business Profits Tax” in other jurisdictions. UAE Corporate Tax applies to juridical persons incorporated in the UAE and juridical persons effectively

managed and controlled in the UAE, as well as to foreign juridical persons that have a permanent establishment in the UAE.

Individuals will be subject to Corporate Tax only if they are engaged in a business or business activity in the UAE, either directly or through an unincorporated

partnership or sole proprietorship.

For the purposes of Clause 1 ofArticle 51 of the Federal Decree-Law No. 47 of 2022, any Taxable Person shall submitan application for Tax Registration in accordance

with the timelines prescribed in Articles 3, 4 and 5 of this Decision. A juridical person that is a Resident Person, incorporated or otherwise established or recognized prior

to the effective date of this Decision, shall submit the Tax Registration application.

The following persons are exempt from UAE Corporate Tax, either automatically or by way of application:

- The UAE Federal and Emirate Governments and theirdepartments, authorities and other public institutions;

- Wholly Government-owned companies that carry out amandated activity, and that are listed in a Cabinet Decision;

- Businesses engaged in the extraction of UAE naturalresources and related non-extractive activities that are subject to Emirate-level taxation after meeting certain conditions;

- Public Benefit Entities that are listed in a Cabinet Decision;

- Investment Funds that meet the prescribed conditions;

- Public or private pension or social security funds thatmeet certain conditions;

- UAE juridical persons that are wholly-owned andcontrolled by certain exempted entities after meeting certain conditions.  

To assess what the UAE Corporate Tax regime means for your business, as a starting point, you should:

1. Read the Corporate Tax Law and thesupporting information available on the websites of the Ministry of Finance andthe Federal Tax Authority.

2. Use the availableinformation to determine whether your business will be subject to UAE CT and ifso, from what date.

3. Understand the requirementsfor your business under the Corporate Tax Law, including, for example: 

a. Whether your businessneeds to register for UAE Corporate Tax.     

b. What is the accounting/ Tax Period for your business.      

c. By when your business would need to file a UAE Corporate Tax return.     

d. What elections or applications can or should your business make for UAE Corporate Tax purposes.    

e. How UAE Corporate Tax may impact your business’ obligations and liabilities under contracts with customers and suppliers.     

f. What financial information and records your business will need to keep for UAE Corporate Tax purposes. 
    
4. Regularly check the websites of the Ministry of Finance and the Federal Tax Authority for further information and guidance on the UAE Corporate Tax regime.

‍