Corporate Income Tax (CIT): standard rate –
20% on taxable profit. Reduced rates may apply for companies operating in special economic zones or under preferential regimes.
SME tax regimes: small businesses may apply simplified turnover-based taxation (
2–4%, depending on the regime), significantly reducing the tax burden for startups and local service companies.
VAT: standard VAT rate –
12%. Mandatory VAT registration applies once the statutory turnover threshold is exceeded. Exports are generally subject to
0% VAT, provided compliance requirements are met.
Payroll taxes: employers pay social tax, pension contributions, and mandatory health insurance contributions for employees.
AIFC tax incentives: AIFC participants providing qualifying financial and related services are exempt from
CIT and VAT on such income until
1 January 2066, as well as from property and land taxes within the AIFC. Dividends, interest, and capital gains on qualifying securities and shares are also tax-exempt.
Reporting:- Annual financial statements and CIT returns are filed electronically.
- VAT and other tax returns are filed monthly or quarterly, depending on the tax regime and turnover.
- Accounting is maintained under national standards or IFRS (mandatory for medium, large, and public-interest entities).