This relief system, outlined in Article 21 of the Federal Decree-Law No. 47 of 2022, allows eligible small businesses to treat their taxable revenue as zero for a particular tax period. This results in zero rate corporate tax payments for the relevant period, which is a significant advantage for small businesses.
If not for the “no tax” regime or “tax-free” tag, would the United Arab Emirates still remain favourite amongst investors and business persons from the world over? We don’t know. For the time being what we know is federal corporate tax is on its way to the UAE and will reach here next year. The