UAE Tax LawCabinet Resolution No. (116) of 2022 Concerning the Determination of the Amount of Annual Income Subject to Corporate Tax

Article (1) Definitions In applying the provisions of this Resolution, the following words and phrases shall have the meanings indicated opposite each of them, unless otherwise stated: State : The United Arab Emirates. Ministry : Ministry of Finance. Minister : Minister of Finance. Authority : Federal Tax Authority. Person : Any natural or legal person. Taxpayer : A person who is subject to Corporate Tax in a country under the Corporate Tax law. Corporate Tax Law : Federal Decree-Law No. (47) of 2022 Concerning the Corporate Tax. Corporate Tax : The tax imposed under the Corporate Tax Law on legal persons and business income. Taxable Income : Income subject to the Corporate Tax under the Cor…

Article (2) Taxable Income Subject to the Corporate Tax at the Rate of (0%) Zero per Cent 1. For the purposes of Paragraph (a) of Clause (1) of Article (3) of the Corporate Tax Law, the part of the Taxable Income of the Taxpayer that does not exceed the amount of (AED 375,000) three hundred and seventy-five thousand Emirati dirhams is subject to Corporate Tax at a zero rate (0%) per cent in the tax period. This is regardless of whether the Taxpayer carries on several businesses or business activities in that tax period. 2. If the Authority is acknowledged that one or more persons have separated their business or business activity in a fictitious manner, the Taxable Income of all their busine…

Article (3) Income Subject to the Corporate Tax at the Rate of (9%) Nine per Cent For the purposes of paragraph (b) of Clause (1) of Article (3) of the Corporate Tax Law, the Taxable Income of the Taxpayer that exceeds the amount of (AED 375,000) three hundred and seventy-five thousand Emirati dirham s is subject to Corporate Tax at the rate of (9) nine per cent in the tax period of relevance.

Article (4) Executive Resolutions The Minister of Finance shall issue the necessary decisions to implement the provisions of this decision.

Article (5) Publication and Enforcement This Resolution shall be published in the Official Gazette, and shall come into force after (15) fifteen days from the date of its publication. Mohammed bin Rashed Al-Maktoom The Prime Minister Issued by us: On: 06, Jumada II, 1444 A.H. Corresponding to: 30 December 2022 AD

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