The UAE Ministry of Finance (MoF) on 31st January 2022, announced the introduction of the Federal Corporate Tax (CT) on business profits effective for financial years starting on or after 1 June 2023. While the UAE MoF is finalizing the UAE CT legislation, on 28th April 2022, it issued a Public Consultation Document (PCD) covering various aspects of the proposed law and seeking feedback from business stakeholders.
The consultation outlines the rationale for a federal CT regime and the key principles. It aims to share updates and gather information on a number of key topics.
The PCD helps to give us an idea of the direction for the roll out of CT in the UAE in 2023. However, this guidance document should not be relied upon to make business decision as this could be subject to change based on the feedback from the consultation. This document doesn’t reflect final CT law and full text of law will be issued in due course.