Direct Tax

In the UAE, the Direct Tax landscape has evolved significantly in recent years. Historically known as a tax-free jurisdiction, the UAE has introduced a modern direct tax framework in 2023 to align with international tax standards and support long-term economic growth. The introduction of Corporate Tax alongwith Transfer Pricing Regulations has marked a major shift in the country's tax environment, creating new compliance and reporting obligations for businesses operating within the UAE.

Today, the UAE's Direct Tax regime primarily consists of:

  • Corporate Tax applicable to eligible businesses and taxable persons.

  • Transfer Pricing Regulations governing transactions between Related Parties and Connected Persons.

  • Withholding Tax Provisions, currently applied at a 0% rate under the UAE Corporate Tax regime.