Corporate tax (CT) is a type of direct tax imposed on the net income or profits of corporations and various entities arising from their business activities. The regulations governing corporate tax in the UAE are outlined in Federal Decree-Law No.60 of 2023, amending certain provisions of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.
Starting from the commencement of their initial financial year on or after June 1, 2023, businesses will be subject to UAE Corporate Tax.

Objectives of CT include:
• Establishing the UAE as a prominent global hub for business and investment.

• Accelerating development to meet strategic objectives.

• Affirming commitment to international tax transparency standards and preventing harmful tax practices. The scope of CT covers:

• All businesses and individuals conducting commercial activities under a license in the UAE.

• Free zone businesses, with existing incentives for those complying with regulations and not operating in the UAE's mainland.

• Foreign entities and individuals engaging in regular trade or business activities in the UAE.

• Banking operations.

• Businesses involved in real estate management, construction, development, agency, and brokerage activities.

Exemptions from CT include:
• Businesses engaged in natural resource extraction, as they remain subject to Emirate-level corporate taxation.

• Dividends and capital gains from qualifying shareholdings of a UAE business are exempt.

• Qualifying intra-group transactions and reorganizations are not subject to CT if conditions are met.

Additionally, CT does not apply to:
• Individual income from salary and employment, whether from the public or private sector.

• Interest and other income from bank deposits or saving schemes.

• Foreign investors' income from dividends, capital gains, interest, royalties, and other investment returns.

• Personal investments in real estate by individuals.

• Dividends, capital gains, and other income from shares or securities owned by individuals in their personal capacity.

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