When did Corporate Tax start in the UAE?
WHEN DID CORPORATE TAX START IN THE UAE?
When did Corporate Tax start in the UAE? Learn the exact start date, how it depends on your financial year, and what businesses must do next. TAXESMAN.
When Did Corporate Tax Start in the UAE?
When did Corporate Tax start in the UAE?
Corporate Tax applies to financial years (tax periods) starting on or after 1 June 2023.
This question matters because many UAE businesses assume Corporate Tax started on a single calendar date for everyone. In reality, your Corporate Tax start depends on your company’s financial year, not the day the law was announced.
In this guide, you will learn the exact Corporate Tax start rule, clear examples for Dubai, Abu Dhabi, Sharjah, and free zones, and what you should do now to stay compliant.
If you want help confirming your first Corporate Tax period and preparing correctly, TAXESMAN is here to help.
When Did Corporate Tax Start in the UAE, Exactly?
The Federal Tax Authority explains that the UAE Corporate Tax regime becomes effective for financial years starting on or after 1 June 2023.
The Corporate Tax law also confirms that it applies to tax periods commencing on or after 1 June 2023.
So when someone asks, “When did Corporate Tax start in the UAE?”, the correct answer is tied to your tax period, not a universal calendar date.
If you want TAXESMAN to confirm your first Corporate Tax period based on your trade license and financial year.
Why Does the Corporate Tax Start Date Depend on My Financial Year?
Corporate Tax is applied by tax period, and for most businesses, the tax period is the financial year.
This means two companies operating in the same emirate or even the same free zone can have different Corporate Tax start dates, simply because their financial years are different.
This is one of the most common areas of confusion.
If you want a simple written confirmation for your company records, TAXESMAN can provide it.
Examples: When Did Corporate Tax Start in the UAE for Different Businesses?
Example 1: Business with a July to June financial year
If your financial year starts on 1 July 2023 and ends on 30 June 2024, your business becomes subject to UAE Corporate Tax from 1 July 2023.
If your company uses a non-calendar financial year, TAXESMAN can confirm your first Corporate Tax period and help you prepare properly.
Example 2: Business with a January to December financial year
If your financial year runs from 1 January 2023 to 31 December 2023, Corporate Tax does not apply during that year.
Your first Corporate Tax period starts on 1 January 2024, because that is your first financial year that starts after 1 June 2023.
If you follow the calendar year, TAXESMAN can help you map your Corporate Tax start date and build a clear compliance checklist.
When Did Corporate Tax Start in the UAE for Free Zone Companies?
The rule is the same.
Corporate Tax applies to tax periods starting on or after 1 June 2023, even for free zone companies.
Free zone businesses may qualify for 0% Corporate Tax on qualifying income, but that is a separate analysis. It does not change when Corporate Tax starts.
If you are a free zone company and want to confirm your position correctly, TAXESMAN can review it for you.
What Should I Do Now If Corporate Tax Has Already Started for My Business?
If Corporate Tax has already started for your business based on your financial year, the next steps usually include:
- Confirming your first Corporate Tax period
- Preparing proper accounting records and financial statements
- Confirming whether and when you must register for Corporate Tax
- Aligning your bookkeeping with Corporate Tax rules
If you want this handled cleanly and without confusion, TAXESMAN can manage your Corporate Tax readiness end to end.
When Did Corporate Tax Start in the UAE?
To recap, when did Corporate Tax start in the UAE?
Corporate Tax applies to financial years (tax periods) starting on or after 1 June 2023, and your actual start date depends entirely on when your financial year begins.
Do not guess your Corporate Tax start date or your first tax period. Let TAXESMAN confirm it, organise your records, and keep your Corporate Tax compliance stress-free.
FAQs: When Did Corporate Tax Start in the UAE?
When did Corporate Tax start in the UAE for most businesses?
For most businesses, Corporate Tax applies from the beginning of the first financial year starting on or after 1 June 2023.
If my financial year is January to December, when did Corporate Tax start for me?
Corporate Tax generally starts from 1 January 2024.
Is the Corporate Tax start date the same for free zone and mainland companies?
Yes. The start rule is the same. Free zone incentives are a separate matter.
Where does the 1 June 2023 date come from?
It is stated in the Corporate Tax law and the official FTA Corporate Tax guidance.