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Dubai to introduce new Tax Regime for FZ Companies

Dubai: The UAE has officially issued a federal decree-law on corporate tax at a nine percent rate for taxable business profits exceeding AED375,000 (approx. 100,000 €). Businesses will become subject to UAE tax from the beginning of their first financial year that starts on or after 1 June 2023. However, existing free zone entities will benefit from a zero percent corporate tax rate on qualifying income.

Corporate tax will not be applied to salaries or other personal income from employment, interest and other personal income earned from bank deposits or saving programmes and investment in real estate by individuals in personal capacity are also not subject to the new tax.

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