United Arab Emirates (‘UAE’) has issued the Federal Decree-Law No. 47 of 2022 on the taxation of Corporations and Businesses in December 2022 and which would be effective from period commencing on or after 1 June 2023. This has come following the roll out of initial guidance for Implementation of Corporate Taxation (“CT”) on 31 January 2022 by the Ministry of Finance of UAE and other relevant consultation documents, cabinet resolution and federal decree.
Some of the significant highlights of the Federal Decree on Taxation of Corporations and Businesses are as under:
Ø Introduction of the Corporate Tax Rate
Ø Definition of Taxable Person
Ø Taxability of Qualifying Free Zone Person
Ø Rules for Determining Taxable Income