UAE Announces Key Amendments to Corporate Tax Law for Greater Clarity
The UAE government has issued amendments to its corporate tax law, clarifying how tax credits, incentives, and reliefs are calculated and settled. These changes address practical gaps in the existing framework, providing businesses with more certainty on tax obligations.
The updates specify the order of applying withholding tax credits, foreign tax credits, and incentives, reducing uncertainty especially for companies with international income. Taxpayers can now claim payments for unused tax credits under defined timelines and procedures. Experts note this refines the 9% corporate tax regime, introduced in 2023 for profits over Dh375,000, making it more aligned with real-world operations and enhancing transparency.
What this means
UAE business owners should review their tax positions to leverage unutilised credits promptly. This signals the Ministry of Finance's commitment to a business-friendly regime—consult your accountant now to ensure compliance and optimise refunds.