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The UAE will be introducing corporation tax, effective from 1 June 2023. This means companies will have to pay 9% corporation tax.

This is an important development for the UAE corporate tax landscape and it is essential for businesses to understand the impact it will have on their operations.

In this article, we will discuss the implications of this new regulation on businesses within the UAE.

When does this change come into effect?

From 1 June 2023, the UAE will introduce corporation tax.

This change will only affect mainland companies, that earn profits above 375,000 AED. Currently, free zone companies will remain exempt from paying corporate tax – as before.

For companies affected by this change, the first corporate tax return will be due by or before September 2025. Use the table below to understand when you should file a corporate tax return.

UAE corporate tax filing dates

How much tax will businesses have to pay?

Only mainland companies in the UAE will be subject to 9% corporate tax if their profits exceed 375,000 AED.

 

How RHJ Accountants can help

We understand this is a big change for mainland companies in the UAE. At RHJ Accountants, we provide a free 30-minute initial consultation with our UAE team, to determine how we can help you.

Our team of experienced, international tax specialists can guide you on tax planning and compliance, whether you already have a UAE company or are considering doing so.

Even if you need to request our services to file a corporate tax return for the first time in the UAE, get in touch today!

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💬 PSA: between April & June our Portuguese team have limited meeting availability due to the Tax Return Submission Period 🇵🇹