The UAE is to lift its tax-free status by introducing federal corporate tax for businesses that have a net annual profit of over AED 375,000. Emirates, which has already switched from Friday-Saturday weekends to Saturdays and Sundays, the latest move to introduce corporate tax is to align closer with global markets.
The standard corporate tax rate for businesses that have a net annual profit over AED 375,000 will be 9% and a rate of 15% for multinational companies, which is in line with the Global minimum corporate tax rate agreement. While the tax rate is 0% for small businesses and start-ups with net annual profits under AED 375,000.
The corporate tax won’t apply on personal income from employment, real estate and other investments. The tax incentive will remain in place for UAE’s free-trade zone companies that don’t do business with the mainland.
The new tax initiative is to reaffirm UAE’s commitment to meeting international standards for tax transparency and preventing harmful tax practises. Also, it is an effort to make the UAE - the cluster of 7 Emirates, with the most competitive corporate tax regime in the world.
While there is enough time till June 2023 for the new taxation rule to come into effect, it is necessary for businesses to be knowledgeable and be prepared for the new corporate tax regime before December 2022.
As the UAE Ministry of Finance will introduce a corporate tax on business profits starting on or after June 1, 2023, businesses with profits of over AED375,000 will have to pay a standard statutory tax rate of 9 percent. Having thorough knowledge of the new corporate tax rules and practises will help medium and large businesses to avoid any corporate tax compliance violations. Edoxi Training Institute provides an 8 hours Corporate Tax Training for corporate businesses on the New UAE Corporate Tax regimes and practises.
At Edoxi Training Institute we have you covered on all that you need to do for preparing your business for the new corporate tax regime by the end of 2022. Our UAE Corporate Tax short course explores many salient sections of the UAE federal law on corporate tax. Here is what is covered in Edoxi’s UAE Corporate Tax course:
This course is most appropriate for:
Edoxi Training Institute is the top Institute for taking all types of professional training courses. With the new corporate tax applicable from 1st June 2023, Edoxi Training Institute as a corporate training center will help you with all you need to know about the corporate tax regime in the UAE.
Our New UAE Corporate Tax Training Course is designed in such a way that after successful completion of the course, businesses will be able to independently work on all the procedures needed to complete before the corporate tax comes into effect. Even if you are someone who is looking to concentrate your career also on the corporate tax area, our corporate tax training will help to master the procedure and management of the corporate taxation.