Historically, the UAE has been known for its tax-free environment, which has been a primary attraction for businesses and expatriates. However, to diversify its revenue streams, foster a more sustainable economy, and align with global taxation standards, the UAE introduced corporate tax regulations specific to mainland companies. These regulations mandate that corporations registered in the mainland zone — as opposed to free zones — are liable to pay a certain percentage of their income as tax.
This shift aims to ensure a balanced economic landscape, promoting fair competition between mainland and free zone businesses. It's crucial for companies operating or planning to establish a presence in the UAE mainland to familiarize themselves with the specific tax rates, exemptions, and compliance requirements to ensure adherence and optimize their financial planning. There are a few key points that you have to keep in mind about the (United Arab Emirates) and all of them our experts have shared in this blog post.