The United Arab Emirates (UAE) began rolling out a 9% corporate tax on June 1, 2023. The tax applies to all businesses operating in the UAE, with the exception of those located in free zones. Free zones are special economic zones that offer a variety of incentives to businesses, including tax breaks.
The introduction of the corporate tax is a significant change for the UAE, which has long been a tax-free haven for businesses. The government has said that the tax is necessary to diversify the economy and reduce its reliance on oil revenues.