The new Sharjah Law No. 3 of 2025 on the Corporate Tax on Companies Involved in Extractive and Non-Extractive Natural Resources in the Emirate of Sharjah came into force on February 13, 2025.
The law represents a supplementary legislative act on the local level in relation to the federal corporate tax legislation whose basis is set by Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.
Here are the key takeaways according to the new law:
Sharjah companies involved in extractive business (i.e. business activities related to the exploration and extraction of natural resources) are subject to a tax of 20%. The taxable base for such companies shall be calculated based on the company’s total share of the value of the produced oil and gas. These companies shall pay the due tax amount to the Petroleum Department of Sharjah in accordance with the agreement between the Petroleum Department and a particular Company.
Sharjah companies involved in non-extractive business (i.e. business activities related to the processing, storage, transportation or distr...