Tuesday, February 01, 2022
Gulf Business - UAE corporate tax: Free zone based businesses with mainland operations to come under tax regime
Dubai: All businesses in the UAE will now come under the corporate tax umbrella. The UAE authorities, meanwhile, reaffirm that there be no tax on individuals.
As regards free zones, the 9 per cent tax will apply to those businesses within free zones that derive commercial benefits from the mainland. "The incentives currently being offered to free zone businesses will be honoured for businesses that comply with all regulatory requirements - and that do not conduct business with mainland UAE," said Pankaj Jain, Managing Director at AskPankaj Tax Consultants. "The introduction of corporate tax (CT) for the first time in the UAE is historical - a paradigm shift - for the country and the business community. "What is the corporate tax structure going to be?
It will 0 per cent on taxable income of up to Dh375,000;
9 per cent for taxable income above Dh375,000; and
It will be a different tax rate for specified multinationals (having consolidated global revenues in excess of 750 million euros - or Dh3.15 billion - and meeting other conditions.Source: