Navigating Corporate Tax in Dubai: Key Provisions of the 2022 Federal Decree-Law No. 47
The UAE's Federal Decree-Law No. 47 of 2022, published on 9th December 2022, introduces a Corporate Tax framework effective from 1st June 2023. Businesses will face a 9% tax on profits exceeding AED 375,000, while profits below this amount are taxed at 0%. This law aims to support small businesses and startups by providing a tax relief mechanism. Additionally, the decree outlines specific conditions for free zone entities to benefit from a 0% corporate tax rate. Companies must familiarize themselves with these provisions to ensure compliance and leverage potential tax advantages.