The United Arab Emirates announced the application of corporate tax at a basic rate of 9% on business profits in the country, starting on or after June 1, 2023, with the exception of companies operating in the field of natural resource extraction activities, as they will remain subject to corporate taxes at the emirate level. As support for startups and small businesses, a 0% rate will be applied to taxable profits that do not exceed 375,000 dirhams. Foreign entities and individuals will not be subject to corporate tax unless they carry out a commercial activity in the UAE or have a continuous or regular business activity, as withholding tax will not be applied to local or foreign (cross-border) payments.
This news may be a result of the issuance of rules regulating minimum taxes internationally by the OECD last October.