UAE Corporate Tax 2024: Everything Businesses Need to Know

<h2>What is UAE Corporate Tax?</h2><p>The UAE Federal Decree-Law on Corporate Tax (CT) came into force on 1 June 2023 for financial years starting on or after that date. It applies a 9% rate on taxable income exceeding AED 375,000 annually.</p><h2>Who is Subject to Corporate Tax?</h2><p>UAE Corporate Tax applies to:<br>- UAE-incorporated businesses<br>- Foreign businesses with a permanent establishment in the UAE<br>- Businesses with UAE-sourced income</p><h2>Who is Exempt?</h2><p>Certain entities are exempt:<br>- Government entities<br>- Qualifying public benefit organizations<br>- Qualifying investment funds<br>- Qualifying free zone persons (see below)</p><h2>Free Zone Businesses and Corporate Tax</h2><p>Free zone companies can maintain a 0% CT rate if they qualify as a 'Qualifying Free Zone Person' (QFZP). This requires: maintaining adequate substance in the free zone, earning Qualifying Income, not having elected to be subject to standard CT, and complying with UAE CT Law requirements.</p><h2>Registration Requirements</h2><p>All UAE businesses must register for Corporate Tax through the EmaraTax portal, regardless of whether they are subject to the 9% rate or benefit from exemptions.</p>