UAE Corporate Tax

The UAE has implemented corporate tax in order to stimulate economic growth and promote a business-friendly environment. The corporate tax is an important source of revenue for the government and helps to fund essential services such as infrastructure, healthcare, and education.
The timeline for implementation of corporate tax in the UAE began in 2018 with the introduction of Value Added Tax (VAT). This was followed by the announcement of Corporate Income Tax (CIT) in 2022 with effective date from financial years starting 1st June 2023. The reasons for implementing corporate tax were to reduce reliance on oil revenues and attract more foreign investment into the country.
The impacts of this new law have been significant, with businesses now having to pay taxes on their profits. This has resulted in an increase in costs for businesses, but it also helps to create a level playing field between local and international companies operating within the UAE. It is also critical for businesses as it encourages them to become more efficient by reducing unnecessary costs and increasing their competitiveness