On December 9, 2022, the United Arab Emirates (UAE) issued Federal Decree-Law No. (47) of 2022, also known as the “Corporate Tax Law.” This law is the legislative foundation for implementing a Federal Corporate Tax in the UAE, effective for financial years beginning on or after June 1, 2023.

The primary objective behind introducing Corporate Tax is to support the UAE in achieving its strategic goals and accelerating its development and transformation. By establishing a competitive Corporate Tax regime that aligns with international standards and taking advantage of the UAE’s extensive network of double tax treaties, the country aims to solidify its position as a leading destination for businesses and investments.

Considering the UAE’s status as an international business hub and a global financial center, the Corporate Tax regime draws from best practices worldwide and incorporates internationally recognized and accepted principles. This approach ensures that the UAE Corporate Tax system will be easily understandable and transparent in its implications for business operations.