THE IMPACT OF CORPORATE TAX ON COMPANIES WITH FOREIGN PARTNERSHIPS IN THE UAE

The United Arab Emirates (UAE) introduced a federal corporate tax regime under Federal Decree‑Law No. 47 of 2022 on the Taxation of Corporations and Businesses (commonly referred to simply as the “Corporate Tax Law”). The standard rate is 9 % for taxable income above a threshold and, for highly-profitable multinationals, minimum top-up tax rules apply. For companies in the UAE that have foreign partnerships (i.e., either are partners in foreign partnerships or host foreign partners), the regime brings new opportunities and complexities. This article explores how corporate tax affects such structures, what considerations arise, and strategic implications.