The introduction of corporate tax in the United Arab Emirates (UAE) marks a significant shift in the nation’s economic landscape. Historically, the UAE maintained a tax-free business environment, which attracted global investors and businesses seeking financial and operational advantages. However, as the global economy evolved and international tax regulations tightened, the UAE embraced corporate tax as a strategic measure to align with global standards and ensure Exclusive Zone sustainable economic growth. This shift highlights the nation’s commitment to maintaining its competitiveness while adhering to international norms like the OECD's Base Erosion and Profit Shifting (BEPS) framework.

One of the earliest milestones in the UAE’s corporate tax journey was the adoption of income tax decrees in the 1960s, primarily targeting oil and gas companies. These regulations laid the foundation for corporate taxation but were limited to specific sectors. Free zones, which played a pivotal role in attracting foreign investment, were exempt from these taxes, reinforcing the UAE’s reputation as a tax haven. Over the years, the government's approach evolved, driven by the need to diversify revenue sources and reduce reliance on oil.