What are the key insights entrepreneurs should know about corporate tax in the UAE?

The recent corporate tax law in the UAE, effective June 1, 2023, imposes a 9% tax on net profits exceeding AED 375,000, making it the lowest corporate tax rate in the region. This federal tax, aimed at enhancing international tax transparency and maintaining the UAE’s status as a global business hub, applies to all businesses, including those under commercial licenses, banks, and insurance companies. However, businesses earning less than AED 375,000 are exempt from the tax, as are individuals earning income from employment or investment interests. As the taxation landscape evolves, it's advisable for entrepreneurs to consult with professional tax advisors to navigate these changes effectively.

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