du has announced that it has been notified by the UAE Ministry of Finance of the extension of the existing Federal Royalty regime and Corporate Tax Law applicable to the telecommunications sector for a further three-year period, from 1 January 2027 to 31 December 2029.
The extension provides continued clarity on the federal royalty and tax framework governing UAE telecom operators over the next three years.
Key highlights:
• Federal Royalty regime extended until 31 December 2029
• Federal Royalty rate remains at 38% of UAE net profits
• Corporate Tax of 9% applies after deduction of the Federal Royalty
• Combined annual Federal Royalty and Corporate Tax payment will not be less than AED 1.8 billion
• Payments are due within five months after the end of each fiscal year
Items excluded from the Federal Royalty calculation include:
• Profits generated by international controlled entities
• Profits from international non-controlled entities, including associates and joint ventures
• Dividends and profit distributions from qualifying international investments taxed at 9% or above
• Profit attributable to non-controlling interest holders in UAE controlled entities
Source: du
Disclaimer: This post is for informational purposes only and should not be considered investment or financial advice.
