UAE 9% corporate tax starts from 2023 or 2024?

[HundHond]

For me things are pretty complicated in UAE, I don’t understand wether I need to pay taxes on my Freezone company from 01/06/2023-01/06/2024 or does it start from beginning of 2024 till end of year. Need to mention that I fully qualify to pay taxes due to 3M and 375k rule. According to the official gov website:

Businesses will become subject to UAE Corporate Tax from the beginning of their first financial year that starts on or after 1 June 2023.

So in my case my Freezone company was established in October 2022 and would expire on October 2023. Does it mean that my financial year starts from 01/06/2023 till 31/06/2023?

Do I need to pay taxes from June 2023 or from beginning of 2024?

Is it only me or are things here really complicated?

 

[0xDEADBEEF]

Your first financial year can be between 6 and 18 months. So from date of incorporation until 31/12/2023 should be your first financial year.

Which means you are subject to CIT from 01/01/2024 onwards.

 

[HundHond]

Your first financial year can be between 6 and 18 months. So from date of incorporation until 31/12/2023 should be your first financial year.

Which means you are subject to CIT from 01/01/2024 onwards.

So basically my first financial year was from October 2022 till 31 December 2023. In this time the corporate tax (9%) was issued on 1st of June. Will I need to pay CT from 1st of June 2023 till December 2024 which is 18 months?

 

[0xDEADBEEF]

So basically my first financial year was from October 2022 till 31 December 2023. In this time the corporate tax (9%) was issued on 1st of June. Will I need to pay CT from 1st of June 2023 till December 2024 which is 18 months?

You would have your first financial year start X/10/2022 and end on 31/12/23. In your case you would only need to do this once, as this is your first accounting period. Then just stick to calendar years after 01/01/2024.

This means your financial year started before CT was introduced and no CT needs to be paid over that first accounting period.

 

[Adrian717]

For me things are pretty complicated in UAE, I don’t understand wether I need to pay taxes on my Freezone company from 01/06/2023-01/06/2024 or does it start from beginning of 2024 till end of year. Need to mention that I fully qualify to pay taxes due to 3M and 375k rule. According to the official gov website:

Businesses will become subject to UAE Corporate Tax from the beginning of their first financial year that starts on or after 1 June 2023.

So in my case my Freezone company was established in October 2022 and would expire on October 2023. Does it mean that my financial year starts from 01/06/2023 till 31/06/2023?

Do I need to pay taxes from June 2023 or from beginning of 2024?

Is it only me or are things here really complicated?

@HundHond
There are ways for UAE-free zone companies to avoid paying 9% corporate tax!

certain incomes (Qualifying income) that are exempt from UAE corporation tax in the FREEZONE. Businesses can restructure themselves slightly in order to continue availing the full zero tax benefit in the Freezone. To fully assess your business and how you can restructure in order to enjoy zero tax.

you can DM