The new corporate tax would cover all forms of business except natural resource extraction. The taxes will apply to corporate profits that will exceed AED 375000, meaning businesses with a smaller profit margin are still tax-free. These taxes would be used for investment and headquarters purposes whereby it will facilitate for free flow of trade, capital and financial services.
Corporate tax in the UAE is a form of direct tax imposed on net income or business profit. The UAE introduced this tax with the aim of strengthening the country’s position as a leading global center for business and investment, in addition to accelerating the country’s development and transformation to achieve its strategic goals and renewing its commitment to meeting international standards of transparency tax and prevent harmful tax practices.