The UAE Cabinet of Ministers has issued a decision setting the taxable income threshold for the 0% corporate tax rate. Under the UAE's new corporate tax regime, the following tax rates apply:
- 0% on the portion of taxable income not exceeding the amount specified in a decision issued by the Cabinet; and
- 9% on taxable income that exceeds the amount specified in a decision issued by the Cabinet.
The Cabinet decision confirms that the threshold amount is AED 375,000 as was expected.
The new regime takes effect for tax periods beginning on or after 1 June 2023, with tax returns and payments due within 9 months from the end of the relevant tax period. For companies following the calendar year, the new regime is effective for the tax period beginning 1 January 2024, with the first return and payment due by 30 September 2025. Click the following links for guidance on the new corporate tax regime as published by the Ministry of Finance and the Federal Tax Authority.