Legal Basis: Federal Decree-Law No. (47) of 2022, effective June 1, 2023, or later
Purpose: Enhance UAE’s global business hub status, diversify revenue, meet international tax transparency standards.
Scope: Applies to all businesses and individuals with commercial licenses in UAE, including Free Zone businesses (with incentives), foreign entities with ongoing trade, banking, and real estate activities
Taxation Basis: Residence and source .
Resident Person: Taxed on domestic and foreign income .
Non-Resident Person: Taxed only on UAE-sourced income .
Taxable Income Calculation: Starts from accounting net profit, adjusted per CT Law .
Deductible Expenses: Generally, all legitimate business expenses incurred for deriving taxable income are deductible .
Administering Authority: Federal Tax Authority (FTA) .
Rates: 0% for taxable income up to AED 375,000; 9% for taxable income above AED 375,000.
