The Federal Tax Authority in the UAE announced that corporate tax What was announced today, Monday, will not be imposed on personal income from a job, real estate investments, investment in stocks, or any income earned by an individual, and does not arise from business or any other form of licensed or permitted commercial activity in the country.
It added that the corporate tax will be applied to the adjusted net accounting profit.
She indicated that businesses in the free zone that comply with all legislative requirements can continue to benefit from tax incentives in the free zones.
She stated that the activities of extracting natural materials will remain subject to taxes imposed on companies at the level of the local emirate.
Withholding tax will not apply to domestic and overseas payments (cross-border payments).
Businesses in the country will be exempted from paying tax on capital gains and dividends received from their eligible shares.
Corporate tax will not be applied to eligible transactions and restructurings between companies within the same tax group.
Deduction of foreign taxes paid from the corporate tax owed in the country will be allowed, and generous rules will be made for businesses to transfer and use losses.
The UAE Ministry of Finance announced today that it will introduce a federal tax on business profits that will apply to fiscal years starting on or after June 1, 2023, and businesses in the country will be subject to corporate tax from their first fiscal year starting on or after June 1, 2023.