Double taxation occurs when a person or business is taxed twice on the same income. This typically happens when a taxpayer is required to pay taxes in two different countries on the same earnings. For businesses with international operations, double taxation can reduce profits and limit growth opportunities, making it harder to expand globally.

On 1 June 2023, the Ministry of Finance (MoF) introduced a new federal corporate tax system in the UAE. This significant change means that businesses in Dubai must reassess their tax strategies to remain compliant and minimize tax liabilities.