While the tax rate is 9%, small businesses with sales under AED 3 million are exempt, though they still need to file tax returns. Many small businesses are not aware of this requirement, highlighting a knowledge gap in understanding taxation.

To help businesses prepare, Virtuzone has pledged to assist 10,000 small firms in getting ready for tax for free, emphasizing the need for education and readiness.

The UAE's move to introduce corporate tax aims to create a more diverse source of revenue, improve long-term financial stability, and enhance its global reputation as a business destination.

The tax is primarily targeted at larger businesses, with allowances for small businesses to minimize disruption. However, all businesses, regardless of size, need to prepare for the transition to corporate tax to avoid potential complications and costs.