Corporate Tax

Corporate tax is levied on company profits, with UAE implementing 9% tax on taxable income above AED 375,000 effective June 2023, affecting property holding structures.

UAE Corporate TaxRate
Taxable income up to AED 375,0000%
Taxable income above AED 375,0009%
Free zone qualifying income0% if conditions met
Rental incomeTaxable as business income
Capital gains on UAE propertyExplicitly exempt
Effective dateFinancial years starting June 1, 2023 onward
Impact on StructuresConsideration
Individual ownershipNo corporate tax, only personal
UAE mainland companySubject to 9% on profits
Free zone company0% if meets qualifying criteria
Offshore SPVGenerally not subject if no UAE-source income
REIT structureExempt from corporate tax
Planning importanceStructure choice materially affects returns

Related Terms

Corporate TaxFree Zone CompanySPVREIT (Real Estate Investment Trust)After-Tax Returns

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