UAE Corporate Tax: Businesses Must File First Tax Returns by September 30

The United Arab Emirates (UAE) has introduced a new corporate tax system, marking a significant shift in its economic landscape. Businesses incorporated in June 2023 are required to file their first tax returns by September 30, 2024.  Background of the UAE Corporate Tax The UAE Ministry of Finance announced the implementation of a federal corporate tax system through Federal Decree-Law No. 47 of 2022. This law aims to diversify the UAE’s revenue sources and align with international tax standards. The corporate tax applies to all businesses except those engaged in the extraction of natural resources, which remain subject to Emirate-level taxation. Key Features of the Corporate Tax Tax Rates: The corporate tax rate is set at 9% for taxable income exceeding AED 375,000. Income below this threshold is taxed at 0%.