GTL Summary:

Article 3 establishes the specific tax rates applicable under the UAE Corporate Tax regime. It sets a two-tier rate for regular taxable income: 0% on income up to a Cabinet-specified threshold and 9% on income exceeding that amount. For Qualifying Free Zone Persons, a 0% rate applies to 'Qualifying Income', while a 9% rate applies to any other taxable income. As amended by FDL 60/2023, it introduces a new clause enabling a Cabinet decision to impose a 'Top-up Tax' on Multinational Enterprises, ensuring their effective tax rate reaches a total of 15%.

Document Type: Tax Law Article
Law: CIT (FDL No 47 of 2022, as amended)
Article Number: 3
Country: 🇦🇪 UAE
Location: Chapter 2 - Imposition of Corporate Tax and Applicable Rates
Order: 3
Last updated at: 2025-11-04 11:19:40 UTC

Chapter 2 - Imposition of Corporate Tax and Applicable Rates

Article 3 - Corporate Tax Rate

  1. Corporate Tax shall be imposed on the Taxable Income at the following rates:

    1. 0% (zero percent) on the portion of the Taxable Income not exceeding the amount specified in a decision issued by the Cabinet at the suggestion of the Minister.

    2. 9% (nine percent) on Taxable Income that exceeds the amount specified in a decision issued by the Cabinet at the suggestion of the Minister.

  2. Corporate Tax shall be imposed on a Qualifying Free Zone Person at the following rates:

    1. 0% (zero percent) on Qualifying Income.

    2. 9% (nine percent) on Taxable Income that is not Qualifying Income under Article 18 of this Decree-Law and any decision issued by the Cabinet at the suggestion of the Minister in respect thereof.

  3. [Without prejudice to the provisions of Clauses (1) and (2) of this Article, the Cabinet at the suggestion of the Minister shall issue a decision regulating all cases, provisions, conditions, rules, controls, and procedures for imposing the Top-up Tax on Multinational Enterprises and the exemptions therefrom, so that the total percentage of the effective tax imposed on them is (15%) fifteen percent.] [G1]

GTL Notes

[G1]Inserted vide Article 1 of Federal Decree Law No. 60 of 2023 dated 2 October 2023

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