The purpose of corporate tax

 

• Enhancing the country's position as a leading global centre for business and investment
• Accelerate the development of the country and its transformation to achieve its strategic goals
• Renewing its commitment towards meeting international standards of tax transparency and preventing harmful tax practices.

 

Corporate tax will apply to:

• All businesses and individuals that carry out business activities under a commercial license or permit to carry out commercial, industrial, or professional activity in the country. 

• Businesses established in free zones So that the corporate tax system will continue to provide corporate tax incentives, which are currently provided to businesses established in free zones, which comply with all regulatory requirements and do not conduct commercial activities in the mainland of the UAE. 

• Foreign companies and foreign individuals if they carry out a continuous or regular commercial activity in the UAE.

• banking operations

• Companies operating in the field of real estate management, construction work, real estate development, real estate agencies, and real estate brokerage activities.

Exceptions to corporate tax

 

However, there are some exceptions that do not require some companies to be subject to corporate tax, including the following:

 

• Natural resource extraction activities and businesses that will remain subject to corporate taxes at the local emirate level

• Businesses in the country will be exempt from paying corporate tax on dividends and capital gains received from their qualifying shares.

• Eligible transactions between companies in the same tax group and restructuring provided the necessary conditions are met.

• An individual's salary or other income earned from employment, whether received from government work or from the private sector
• Interest and other types of income from bank deposits or savings schemes earned by individuals for the state's corporate tax
• Investment in real estate by individuals in their personal capacity

• Foreign investor income generated from dividends, capital gains, interest, royalties and other investment returns

• Stock dividends, capital gains, and any other income generated through their ownership of shares or any other securities in their personal capacity.

 

In light of the new data, which will be effective from the beginning of the new year, the corporate tax rate will be 0% for taxable income up to 375,000 thousand dirhams, and 9% for taxable income that exceeds 375,000 thousand dirhams.

 

Therefore, Al Arish Tax Consultancy pledges its experience in the field of taxation to provide all assistance in registering corporate tax easily and verifying the company's sufficient revenues that obligate it to pay the tax to the state. Al Arish tax consultancy also helps you if you are a small company or a self-employed business that does not require registration in corporate tax.