UAE New 9% Tax: No More Zero Taxes in Dubai | Summary and Q&A

TL;DR

The UAE has announced a 9% corporate tax starting in 2023, but there are loopholes and exemptions for certain types of companies and income.

Key Insights

• 👨‍💼 The UAE will introduce a 9% corporate tax on business profits starting in 2023.
• 🚕 Companies based in the UAE that sell to UAE customers will be subject to the tax on profits exceeding 375,000 AED.
• 🥶 Free zone companies and income from employment, real estate, and other investments will be exempt from the corporate tax.
• 🚕 The UAE's tax regime will include loopholes and generous loss utilization rules, allowing companies to potentially avoid the 9% tax.
• 🚕 Personal income from employment, real estate, and other investments will not be subject to the corporate tax.
• 🫠 Headlines may grab attention, but it's important to read the fine print and understand the exemptions and loopholes.
• 🚕 The UAE may be implementing the tax to address concerns about wealth migration from other countries.

Transcript

hi it's the wealthy expat here small emergency video the uae just announced a nine percent corporate tax starting in 2023 more specifically june 1st 2023 i've gotten over a hundred messages so far about this i have a couple of clients freaking out the youtube comments are freaking out so i'm gonna clear up the fuss are corporate taxes coming to whi... Read More

Questions & Answers

Q: Which companies will be subject to the 9% corporate tax in the UAE?

Companies based in the UAE that sell to UAE customers will pay the tax on profits exceeding 375,000 AED.

Q: Are free zone companies exempt from the corporate tax?

Yes, free zone companies and income from employment, real estate, and other investments are exempt from the corporate tax.

Q: Will personal income be subject to the 9% corporate tax?

No, personal income from employment, real estate, and other investments will not be subject to the corporate tax.

Q: Why is the UAE implementing a corporate tax?

The UAE may be facing pressure from other countries and is implementing the tax to address concerns about wealth migration.

Q: Which companies will be subject to the 9% corporate tax in the UAE?

Companies based in the UAE that sell to UAE customers will pay the tax on profits exceeding 375,000 AED.

More Insights

• The UAE will introduce a 9% corporate tax on business profits starting in 2023.

• Companies based in the UAE that sell to UAE customers will be subject to the tax on profits exceeding 375,000 AED.

• Free zone companies and income from employment, real estate, and other investments will be exempt from the corporate tax.

• The UAE's tax regime will include loopholes and generous loss utilization rules, allowing companies to potentially avoid the 9% tax.

• Personal income from employment, real estate, and other investments will not be subject to the corporate tax.

• Headlines may grab attention, but it's important to read the fine print and understand the exemptions and loopholes.

• The UAE may be implementing the tax to address concerns about wealth migration from other countries.

• The corporate tax is not applicable to individuals or companies solely operating in free zones.

Summary & Key Takeaways

• The UAE will implement a 9% corporate tax on business profits starting from June 1st, 2023.

• Companies based in the UAE that sell to UAE customers will pay the tax on profits exceeding 375,000 AED (approximately $102,000).

• Free zone companies and income from employment, real estate, and other investments will be exempt from the corporate tax.