Answer:
The UAE Corporate Tax regime becomes effective for financial years (Tax Periods) starting on or after 1 June 2023. (Article 69 of Federal Decree-Law No. 47 of 2022)
This means that businesses will become subject to Corporate Tax only from the start of their first financial year that begins on or after 1 June 2023.
Examples:
- A business with a financial year starting on 1 July 2023 and ending on 30 June 2024 will be subject to UAE Corporate Tax from 1 July 2023.
- A business with a financial year starting on 1 January 2023 and ending on 31 December 2023 will be subject to UAE Corporate Tax from 1 January 2024.
The exact start date of Corporate Tax applicability depends on the company’s financial year, not the calendar year.