CT is a direct tax levied on corporations and other businesses net income or profit. CT is sometimes called “Corporate Income Tax” or “Business Profits Tax” in other jurisdictions.

Most countries have a comprehensive CT regime, including most countries in the Middle East.

The UAE CT regime will become effective for financial years starting or after 1 June 2023. Examples: ● A business with a financial year starting on 1 July 2023 and ending on 30 June 2024 will become subject to UAE CT from 1 July 2023 (the beginning of the first financial year that starts on or after 1 June 2023). ● A business with a financial year starting on 1 January 2023 and ending on 31 December 2023 will become subject to UAE CT from 1 January 2024 (the beginning of the first financial year that starts on or after 1 June 2023).

UAE CT applies to juridical persons incorporated in the UAE and juridical persons effectively managed and controlled in the UAE and to foreign juridical persons with a permanent establishment in the UAE. Individuals will be subject to CT only if they are engaged in a business or business activity in the UAE, either directly or through an unincorporated partnership or sole proprietorship. A Cabinet Decision will be issued in due course specifying further information on what would bring a natural person within the scope of UAE CT.

A competitive CT regime based on international best practices is expected to cement the UAE’s position as a leading global hub for business and investment and accelerate the UAE’s development and transformation to achieve its strategic objectives.

Yes – the UAE CT does not differentiate between nationality or residence. Juridical persons incorporated or resident in the UAE or with a permanent establishment in the UAE will be subject to UAE CT. It applies irrespective of the residence and nationality of the individual founders or (ultimate) entity owners.