UAE Corporate Tax Calculator

In January 2022, the United Arab Emirates (UAE) announced the introduction of a new Corporate Tax (CT) rule. This rule becomes applicable either on 1 June 2023 or on 1 January 2024, depending on the financial year followed by the business. It is, therefore, crucial for companies to know how to calculate UAE Corporate Tax to ensure compliance.

Who is a qualifying free zone person as per the UAE laws and what are the corporate tax obligations for such businesses? Read on to learn more.

By introducing 'Small Business Relief' under the UAE corporate tax regime, the government aims to support the growth of the small business sector. This initiative offers small businesses exemption from the corporate tax payment if they meet the given conditions. Such companies can now focus on their expansion and contribute to the country's economic growth.

The UAE Corporate Tax law levies a 9% tax on company profits over AED 375,000, while profits below this threshold are exempt. However, not all businesses are subject to this tax, and understanding the conditions for exemption is crucial for effective financial planning.

Corporate Tax in UAE stands effective, starting June 2023. This big change requires companies across the UAE to be ready for its implementation. It is crucial to learn how this tax will affect the legal, financial, and operational aspects of enterprises.

With the introduction of Corporate Tax in the UAE, it has become important for businesses to review and align their operations closely. While some companies in Free Zones can still enjoy a 0% tax on qualifying income, there are certain conditions that they must satisfy. More on UAE Corporate Tax for Free Zone in this blog!

There's a need to arm yourself with everything possible to streamline your corporate taxes - check out what spend management systems are and how they can help your business lower its tax obligation.

In this first post of the blog series, lets get an overview of corporate tax calculations, including the corporate tax rate in the UAE and how it impacts companies.