The UAE Ministry of Finance has announced new tax measures. They will support startups and small businesses. 

A new corporate tax will be introduced in the UAE on June 1, 2023. It will be 9 %. However, as stated by the Ministry of Finance of the country, not all companies will have to pay it—exempt from this obligation are businesses with income of fewer than 3 million dirhams (about $815,000). This is how the government wants to support small businesses.

After exceeding the limit on revenue, businesses will no longer be able to take advantage of such tax benefits. Also, the tax relief will not apply to companies that meet the requirements of the free zone or those that are part of multinational enterprise groups (MNE Groups). MNE Groups are groups of companies with operations in more than one country whose combined revenue exceeds Dh3.15 billion.

The agency warns that the UAE's Federal Tax Authority (FTA) will monitor businesses and crack down on attempts to cheat the law in an attempt to take advantage of tax breaks.

So far, it has been announced that such measures will be in effect from June 1, 2023, to Dec. 31, 2026.

It should be noted that at the moment, most companies in the UAE do not pay any income tax.