The UAE has issued the Federal Decree-Law No. (47) of 2022 on the taxation of corporations and businesses, which provides the basis for the introduction and implementation of a Federal CT in the UAE, effective for financial years starting on or after 1 June 2023.
Free Zone entities will be required to register and file a CT return, and qualifying Free Zone Persons can have both Qualifying Income (taxed at the rate of 0%) and non-qualifying Taxable Income (taxed at 9%). The CT law establishes who will be exempt from UAE CT, and clarified how taxable income will be calculated. Additional clarity was provided on tax grouping and transfer pricing rules, and the participation exemption criteria have been expanded to include a 12-month continuous holding period requirement. The CT law did not provide guidance on Pillar Two.
And then we post the government article as it is.
