CORPORATE TAX (CT)
Corporate tax (CT) refers to the tax calculated on the profits or revenue of corporations and other business organisations. It is a direct tax levied by the government on the income earned by companies. Corporate tax laws and charges fluctuate from country to country. The purposes of CT differ depending on the jurisdiction and precise aims of the government. The government often tries to strike a balance between generating revenue, fostering economic growth, fairness, and other policies while formulating corporate tax strategies.
The UAE has started initial corporate tax registration for some classes of corporations functioning in the country. The United Arab Emirates (UAE), Ministry of Finance (MOF), made the innovative declaration that a new federal corporate tax system will be implemented in UAE beginning on or after 1st June 2023. UAE corporate tax is operative from June 1, 2023.
It is very critical to recognise the UAE corporate tax registration procedure and the necessities for corporate tax registration. It is also essential to know the administrative supplies. Federal Tax Authority (FTA) will be responsible for the administration, collection, and enforcement of the CT. The country passed a corporate tax law that included businesses with annual revenue over AED 375,000 being subject to paying 9% corporate tax. Any taxable profits that fall below that threshold will not be subject to corporate tax.
