UAE announces corporate tax relief for small businesses, startups

[yngmind]

Not sure if it was discussed here before, but
https://www.khaleejtimes.com/busine...rate-tax-relief-for-small-businesses-startups

The Ministerial Decision No. 73 of 2023 specifies that businesses and individuals with revenues of Dh3 million or less can benefit from Small Business Relief initiative as it is intended to support start-ups and other small businesses by reducing their corporate tax burden and compliance costs.

The UAE government last year announced that it would levy a nine per cent tax on the profits of companies exceeding Dh375,000.


The Ministry said the Dh3 million revenue threshold will apply to tax periods starting on or after June 1, 2023 and will only continue to apply to subsequent tax periods that end before or on December 31, 2026.

 

[yoyodubai]

Interesting to note the following:

"However, the ministry added that the relief will not be available to qualifying free zone persons or members of Multinational Enterprises Groups with operations in more than one country and consolidated group revenues of more than Dh3.15 billion."

If you fall in that revenue bracket perhaps forming a mainland company is more interesting than a freezone company?

 

[yngmind]

Interesting to note the following:

"However, the ministry added that the relief will not be available to qualifying free zone persons or members of Multinational Enterprises Groups with operations in more than one country and consolidated group revenues of more than Dh3.15 billion."

If you fall in that revenue bracket perhaps forming a mainland company is more interesting than a freezone company?

Yeah, it seems like it.