The UAE will introduce a 9 per cent corporate tax on businesses for profits exceeding AED 375,000 from next year.
Firms will become subject to the tax from the beginning of their first financial year which starts on or after June 1, 2023.
The decision to introduce corporate tax was first announced at the start of this year.
No tax will apply on salaries or other personal income from employment – be it in the government, semi-government, or private sector.
Profits up to and including that threshold will be taxed at a 0 per cent rate to support small businesses and start-ups.
The move is aimed to enhance the country's global economic competitiveness, the Ministry of Finance added.