UAE’s 652,885 private sector companies remain under-prepared for Corporate Tax that comes into effect in June 2023

Businesses should start internal preparation – including book-keeping and accounting – that will be crucial for external audit and tax filing from next year

News Highlights:

1. The UAE has more than 665,246 active businesses registered with various licensing authorities including 45 free economic zones;

• The total number of registered active business licences in July 2022 amounted to 665,246, a 1.9 percent increase compared to 652,885 licences issued in December 2019, according to the UAE’s National Economic Register (NER);

• About 80-85 percent of the 665,246 registered active businesses fall under the Micro, Small and Medium Enterprises (MSME) and remain below the mandatory VAT threshold of Dh375,000 annual net profit range;

• Most UAE businesses are not yet ready for the 9 percent Corporate Tax that will be levied on companies generating more than Dh375,000 net profit per year from June 2023.

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