Cabinet Decision Cabinet Decision No. 116 of 2022 Cabinet

CD 116/2022 — AED 375,000 rate band

Cabinet of Ministers Decision No. 116 of 2022 on the Annual Taxable Income Subject to Corporate Tax

In force Issued 30 December 2022

Official Arabic text (opens in a new tab) English text (opens in a new tab)

Official Arabic title
قرار مجلس الوزراء رقم (116) لسنة 2022 في شأن تحديد مبلغ الدخل السنوي الخاضع لضريبة الشركات
Document type
Cabinet Decision
Number
116
Issued by
Cabinet
Administered by
Federal Tax Authority
Issued
30 December 2022
Entry into force
15 days after publication in the Official Gazette (Art. 5).
Current position
In force; no amendment found on the MoF tax-legislation pages checked on 5 October 2026.
Topics
Corporate Tax · Rates & thresholds
Official text
Official Arabic text · English text

Factual summary

Sets the two Corporate Tax rate bands referred to in Article 3 of the Corporate Tax law: the part of a taxable person's taxable income up to AED 375,000 in a tax period is taxed at 0%, and the part above AED 375,000 at 9%. The 0% band applies once per taxable person per tax period, even when the person runs several businesses. Splitting a business artificially so that more income falls in the 0% band is treated as an arrangement to obtain a tax advantage.

What it means in practice Professional insight

Who: every taxable person under the Corporate Tax law. What to do: apply the AED 375,000 band once per tax period across all your businesses, and expect the FTA to look at groups of related businesses that appear to have been divided to use the band more than once.

Key provisions

  • Art. 2(1) Taxable income up to AED 375,000 in the tax period: 0%.
  • Art. 2(2)–(3) Artificial separation of a business to use the 0% band is an arrangement under Art. 50(1) of the law.
  • Art. 3 Taxable income above AED 375,000: 9%.

What changed

  1. 30 December 2022 Issued
  2. Entry into force: 15 days after publication in the Official Gazette (Art. 5).

Relationship chain

Law → decisions made under it → amendments → guidance and announcements; oldest first within each level.

  1. 3 October 2022 Federal Decree-Law FDL 47/2022 — Corporate Tax Law In force — amended
    1. 30 December 2022 Cabinet Decision CD 116/2022 — AED 375,000 rate band — Made under Art. 3(1) In force
    2. 3 April 2023 Ministerial Decision MD 73/2023 — Small Business Relief — Made under Art. 21 In force — amended
      1. August 2023 Official guide FTA guide CTGSBR1 — Small Business Relief — Official guide Current version
      2. 29 July 2026 Ministerial Decision MD 131/2026 — SBR extended to 2029 — Amends Art. 2(2) In force
        1. 7 August 2026 Official announcement MoF news 7 Aug 2026 — SBR to 2029 — Announcement Current version
    3. 1 March 2024 FTA Decision FTA Decision 3/2024 — CT registration deadlines — Made under Art. 51(1) In force
    4. 13 August 2024 Public Clarification CTP003 — first Corporate Tax period — Clarifies Arts. 57–58 Current version

Official sources

Official Arabic text (opens in a new tab) English text (opens in a new tab)

Related services: Corporate Tax

Last verified against official sources: 5 October 2026 · اقرأ بالعربية

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General information, not tax advice. Each record is checked against the official source; where they differ, the official Arabic text prevails.