Who Will Be Subject to Corporate Tax Uae?
In adherence to the uae's tax regulations, all companies operating within the country, including those in free zones, are subject to corporate tax, with specific exemptions detailed below. As per the uae ministry of finance (mof), the following entities are liable for corporate tax
- corporations and legal entities based in the uae or conducting their primary management and operations within the uae.
- Foreign legal entities maintaining a permanent establishment in the uae, as outlined in section 8 of the corporate tax law.
- Entities Reporting Financial Years Starting From July 1 Will Commence Tax Calculation From July 1, 2023.
- Entities Reporting Financial Years Starting From January 1 Will Commence Tax Calculation From January 1, 2024
- Individuals engaged in business activities within the UAE
This tax regime came into effect from june 1, 2023, onwards. The calculation of taxes varies based on the financial reporting year. With few specific exceptions, all commercial activities conducted within the uae must register and fulfill corporate tax obligations.
