The primary law governing corporation tax in the UAE is Federal Decree-Law No. 47/2022 On the Taxation of Corporations and Businesses. Federal Decree-Law No. 47/2022, issued on 3 October 2022, represents a major policy shift by introducing corporate tax to the UAE. Federal Decree-Law No. 47/2022 was effective 15 days after the date of its publication in the official gazette and outlines the framework for levying and collecting corporate tax on businesses operating in and from the UAE. It covers various aspects including tax rates, the definition of taxable persons, tax exemptions and reliefs, compliance requirements, and penalties for non-compliance.

Federal Decree-Law No. 47/2022 aims to align UAE tax policy with international tax standards and global best practices, especially the Organisation for Economic Co-operation and Development's (OECD) base erosion and profit shifting (BEPS) initiative. It positions the UAE as a responsible global player while maintaining its competitiveness, thereby enhancing its attractiveness to investors and businesses seeking a stable and compliant environment for growth and expansion.