UAE to introduce 9% corporate tax on business profits in 2023.

Shaheen & Associates

The Finance Ministry announced on Monday, but kept a low base to maintain its attractiveness for businesses. The new regime implies a standard statutory tax rate of 9%, as well as a 0% rate for taxable profits up to 375,000 dirhams ($102,107.50) in order to support small businesses and startups. The legislation has yet to be issued and the details for the corporate tax regime are subject to finalisation.

There will be no personal income tax. Foreign taxes paid will be credited against any payable UAE corporate tax, meaning there will be no double taxation.

Businesses involved in the “extraction of natural resources” — oil and gas production — will be exempt, as they are subject to emirate-level taxation already.