Introduction of corporate income tax in the United Arab Emirates

On January 31, 2022, the United Arab Emirates (UAE) Ministry of Finance announced that a new federal corporate income tax (CIT) system will be implemented in the UAE, effective financial years commencing on or after June 1, 2023. Barring Bahrain, the UAE has introduced the lowest corporate income tax rate within the Gulf Cooperation Council (GCC) region at a standard rate of 9%. The UAE CIT regime has been designed to incorporate best practices globally and minimize the compliance burden on businesses. For more information, please read KPMG’s Tax Flash on this subject.