On 9 December 2022, the United Arab Emirates (" UAE ") promulgated the Federal Act on Corporate and Corporate Taxation No. (47) 2022, referred to as the "Corporate Tax Act", which came into force on 1 June 2023. The Corporate Tax Act ended 50 years of exemption from corporate income tax for Dubai companies.

       According to the decree, all UAE companies, including Dubai Free Trade Zone companies, will be subject to corporate tax (aka corporate income tax) starting from the financial year on or after June 1, 2023.

       According to the decree, any Dubai company that makes profits regardless of whether its operations are in the UAE or outside the UAE is subject to corporate income tax. The tax is levied on the net profit of the company, if the net profit of the year is up to AED 375,000, the tax rate is 0%, and the net profit of more than AED 375,000, the tax rate is 9%, depending on the annual settlement date of each company, the regulation requires that the corporate income tax declaration be completed within 9 months after the annual settlement date. For example, if the company's annual closing date is December 31, 2024, then your company needs to complete the corporate income tax return by September 30, 2025.