As only a few months are left for the corporate tax to take effect, more business owners are now approaching corporate tax consultants in Dubai to assess its potential impact on their companies. Even though the corporate tax is likely to become effective on June 1st, 2023, we are still waiting for the government to release the UAE Corporate Tax Law. We can still carry out a primary assessment on the impact of the Proposed UAE Corporate Tax for legal persons based on the Public Consultation Document released by the Ministry of Finance.
However, businesses are cautioned to wait for the release of the UAE Corporate Tax Law as many of the provisions in the consultation document are subject to amendments. The proposed corporate tax will impact natural persons doing business in the UAE (sole establishment owners, individual partners an unincorporated partnership etc.) However, in this article, we will let you know how the proposed UAE corporate tax impacts legal persons or companies. Read ahead for more insights:
Applicability of UAE Corporate Tax on Legal Persons
The UAE corporate tax will apply to the UAE companies and other legal persons incorporated in the UAE. Foreign legal entities that have permanent establishments in the UAE or that earn a UAE-sourced income will also come within the scope of the corporate tax. Legal persons include Limited Liability Companies (LLC), Private Shareholding Companies, Public Joint Stock Companies, and other legal structures established under the laws of the UAE that have a distinct legal personality.
