The UAE corporate tax announced by the UAE Ministry of Finance on 31 January 2022 is considered the lowest corporate tax rate among the GCC countries. The corporate tax rate in the United Arab Emirates is 9%.
Additionally, certain corporate segments and income are exempt from UAE corporate tax. Let’s take a look at the income and companies that are exempt from corporate tax.
According to the UAE Ministry of Finance, UAE corporate tax generally applies to income from activities in the UAE. However, no corporate tax is payable unless the company’s annual net profit exceeds AED 375,000. The corporate tax rate for a company or business is 0% if its income does not exceed AED 375,000.
The UAE Corporate Tax Law provides for tax exemption for personal income, salaries and other income earned through work in the public or private sector in the UAE.
In addition, employers can deduct employee-related expenses such as salaries, health insurance, bonuses, and other financial compensation from their taxable income.
Income of individuals in their capacity as private persons
UAE corporate tax law exempts personal income in the following cases:
Interest, profits and other income from bank deposits or savings plans of individuals resident in the UAE
Income from investments in real estate by individuals in their personal capacity
Shares or other securities in their personal capacity Dividends, capital gains and other income received by an individual from ownership of
Are freelancers subject to UAE CT?
Income from activities carried out under a freelance license or permit will normally be subject to UAE corporation tax law; however, until the freelance professional’s yearly net profits in the UAE exceed AED 375,000, no corporate tax will be due.
Companies that extract natural resources
Companies that extract natural resources, such as gas and oil, are not required to pay corporation tax because they are still subject to the current corporate tax system at the Emirate level.
You can also Register for Corporate Tax Registration on our website: