Scope - CT will apply to :

• All organizations and people operating in the UAE have a commercial license
• Free Zone enterprises (The UAE CT regime will comply with all regulatory requirements and will continue to fulfill the CT incentives now available to free zone enterprises that are not conducting business on the UAE mainland.)
• ONLY FOR FOREIGN ENTITIES AND INDIVIDUALS CONTINUOUSLY OR REGULARLY TRADE OR BUSINESS IN THE UAE
• banking
• Businesses dealing in the management, building, development, agency and brokerage of real estate.

Exemptions from CT - Below are the rules for corporate tax exemption.

• Companies involved in natural resource exploitation are subject to existing Emirati corporation tax and so excluded from the CT.
• CT does not apply to dividends and capital gains made by UAE entities from eligible shareholdings.
• If the required requirements are satisfied, eligible intragroup transactions and organizational restructurings are not subject to CT.

Additionally, CT will not apply to :

• Personal income, wages, and other employment income, whether from the public or private sector;
• Interest and other income earned by individuals from bank deposits or savings plans;
• Income earned by foreign investors from dividends, capital gains, interest, royalties, and other investment income;
• Real estate investment by individuals in their personal capacity;

CT Rate - As per Ministry of Finance, CT rates are:

• 0% taxable income up to AED 375,000
• 9% of taxable income over AED 375.000 and
• Different tax rates (not yet specified) for large multinationals meeting certain criteria set with reference to Pillar 2 of the OECD Base Erosion and Profit Shifting Project.