Successful F&B Enterprises in UAE will Face a New Tax Beginning in 2023

The United Arab Emirates has issued an official federal order on business taxation.

Any firm earnings above AED375,000 will be taxed at a 9% rate beginning on 1 June 2023.

To help small enterprises and new companies, profits up to and including this amount will be taxed at 0%.

Existing free zone firms will continue to enjoy a 0% corporation tax rate, regardless of their revenue.

According to Federal Decree-Law No. 47 of 2022 on Taxation of Corporations and Businesses (the "Corporate Tax Law"), the new tax is imposed.

Salaries and other personal income from work, interest and other personal income from bank deposits and savings programs are exempt from corporate taxation. Additionally, investments in real estate made by people in their personal capacities are not subject to tax.

Government institutions, pension funds, investment funds, and public benefit organizations are eligible for further exemptions.