Comprehensive Guide to Corporate Tax in Dubai: Federal Decree-Law No. 47 of 2022

On 9th December 2022, the UAE unveiled Federal Decree-Law No. 47, which introduces a new Corporate Tax effective from 1st June 2023. The law imposes a 9% tax on profits exceeding AED 375,000, while profits below this threshold are taxed at 0%. This measure aims to provide relief for small businesses and startups. Additionally, the decree outlines specific conditions for UAE free zone entities to qualify for a 0% corporate tax rate. Businesses must understand these provisions to ensure compliance and optimize their tax planning under the new regulations.