According to Bloomberg, the UAE Ministry of Finance announced the UAE plans to implement a 9% federal tax on corporate earnings. Businesses will become subject to UAE corporate tax from the beginning of their first financial year that starts on or after 1st June 2023.
Bloomberg reports this shift might be in view of the increasing competition of neighboring country Saudi Arabia in mind. The levy-free regime made the UAE, and especially business hub Dubai, a magnet for businesses from across the world.
Corporate tax will not apply to personal income from employment, real estate and other investments, and incentives for free zones will continue.