Cabinet Resolution No. (116) of 2022 Concerning the Determination of the Amount of Annual Income Subject to Corporate Tax (tax law)

Article (1)  
Definitions  
In applying the provisions of this Resolution, the following words and phrases shall have the 
meanings indicated opposite each of them, unless otherwise stated:  
State  : The United Arab Emirates . 
Ministry  : Ministry of Finance . 
Minister  : Minister of Finance . 
Authority  : Federal Tax Authority . 
Person  : Any natural or legal person . 
Taxpayer  : A person who is subject to Corporate Tax in a country under the 
Corporate Tax law . 
Corporate Tax Law  :  Federal Decree -Law No. (47) of 2022 Concerning the Corporate Tax.  
Corporate Tax  : The tax imposed under the Corporate Tax Law on legal persons and 
business income . 
Taxable Income  : Income subject to the Corporate Tax under the Corporate Tax Law . Cabinet Resolution of 20 22 Determining the Amount of Annual Income Subject to the Corporate Tax  2 
 Tax Period  : The period for which the tax return must be submitted . 
Tax Return  : Information provided to the Authority for Corporate Tax purposes in 
accordance with the forms and procedures specified by the 
Authority, including any schedules or attachments thereof, including 
any amendment thereto . 
Business  : Any activity practiced regularly, continuously and independently by 
any person and in any place, such as industrial, commerc ial, 
agricultural, vocational, professional, service, excavation activities, 
or any other activity related to the use of tangible or intangible 
property . 
Business Activity  : Any transaction, activity, series of transactions, or series of activities 
carried out by a person in the course of his business .

Article (2)  
Taxable Income  Subject to  the Corporate Tax  at the Rate of (0%) Zero per  Cent 
1. For the purposes of Paragraph ( a) of Clause (1) of article (3) of the Corporate Tax  Law, the part 
of the Taxable Income  of the Taxpayer  that does not exceed the amount of ( AED 375,000) three 
hundred and seventy -five thousand Emirati dirham s is subject to Corporate Tax  at a zero rate 
(0%) per  cent in the tax period. This is regardless of whether the Taxpayer  carries on several 
businesses or busines s activities in that tax period . 
2. If the Authority  is acknowledged that one or more persons have separated their business or 
business activity in a fictitious manner, the Taxable Income  of all their business or business 
activity is subject to Corporate Tax  at the rate of (0%) zero per  cent in the tax period with  an 
amount exceeding ( AED 375,000) three hundred and seventy -five th ousand Emirati dirham s, 
this shall be deemed as  an arrangement to obtain a Corporate Tax -related advantage in 
accordance with Clause (1) of article (50) of the Corporate Tax  Law . 
3. For the purpose of the Authority verifying whether two or more persons have s puriously 
separated their business or business activity, it shall consider whether the arrangement is 
entered into for a legitimate commercial purpose. Also, whether the persons substantially carry 
on the same busi ness or business activity with c onsidering all relevant facts and circumstances, 
including but not limited to their  financial, economic and organis ational ties.  
 Cabinet Resolution of 20 22 Determining the Amount of Annual Income Subject to the Corporate Tax  3

Article (3)  
Income Subject to the Corporate Tax  at the Rate of (9%) Nine per  Cent 
For the purposes of paragraph (b) of Clause (1) of article (3) of the Corporate Tax  Law, the Taxable 
Income  of the Taxpayer  that exceeds the amount of ( AED 375,000) three hundred and seventy -five 
thousand Emirati dirham s is subject to Corporate Tax  at the  rate of (9) nine per  cent in the tax period 
of relevance.

Article (4)  
Executive Resolutions  
The Minister of Finance shall issue the necessary decisions to implement the provisions of this 
decision.

Article (5)  
Publication and Enforcement  
This Resolution shall be published in the Official Gazette, and shall come into force after (15) fifteen 
days from the date of its publication.  
 
 
 
 
 
 
 
 
 
Mohammed bin Rashed Al -Maktoom  
The Prime Minister  
 
Issued by us:  
On: 06, Jumada II , 1444 A.H. 
Corresponding to : 30 December  2022  AD