Corporate Tax Implementation
Legal entities that have a permanent establishment in the UAE, are incorporated in the UAE, and are effectively managed and controlled in the UAE are all subject to UAE CT (see "Foreign persons" and "Who is considered resident for UAE CT purposes?"). Only individuals who directly, through an unincorporated partnership, or as a sole proprietor, engage in business or other operations in the UAE will be subject to CT. A Cabinet Decision with greater information on what would and would not be covered by UAE CT will be made public when the time is appropriate.
Are UAE legal entities owned by UAE or GCC citizens subject to the UAE CT?
Yes. The UAE CT is a federal tax, so it applies across all emirates regardless of the nationality of the owners.
Will the UAE CT replace VAT?
No. CT and VAT are two different taxes and both continue to apply in the UAE. A business may be subject to one, the other, or both.
Will the UAE CT replace the UAE excise tax?
No. Excise tax continues to apply to the specific goods it covers, and the relevant federal and emirate authorities continue to collect applicable service fees.