In a groundbreaking move that commenced in June 2023, the United Arab Emirates introduced Federal Decree-Law No. 47, titled "On Corporate and Business Taxation" or the "Corporate Tax Law."
This landmark legislation heralds a new era for the nation's economic framework, and will bring about significant changes and opportunities for businesses and corporations alike. The UAE has always demonstrated its firm commitment to fostering a robust and modern economy, positioning itself at the forefront of the global business landscape. The implementation of the Corporate Tax Law will have a significant impact on the trajectory of businesses, investments, and economic growth in the region for years to come.
The UAE has long been celebrated for its enticingly low tax rates
, with citizens enjoying the privilege of tax-free income, and most companies exempt from corporate tax. However, in recent years, this dynamic nation has undergone rapid economic development. The UAE's progressive vision and dedication to embracing cutting-edge technologies have further strengthened its position as a hub for innovation and a gateway for global trade and commerce. This visionary roadmap places emphasis on achieving sustainable economic growth while reducing reliance on traditional sectors like oil and gas. Instead, the UAE is focused on fostering a more diversified and resilient economy and focusing on sectors such as tourism, manufacturing, technology, and financial services.