Corporate Tax in UAE

Corporate Tax in the UAE – Everything Businesses Need to Know

Corporate tax, often called business profits tax, was introduced by the UAE Ministry of Finance to align with international practices and support the country’s long-term economic diversification. It officially came into effect on June 1, 2023, and applies to the net profits of companies operating in the UAE.

Key Points at a Glance

• Tax Rate: 9% on taxable income above AED 375,000
• 0% Rate: For income up to AED 375,000, giving relief to small businesses and startups
• Who Is Affected: UAE mainland companies, free zone companies (on non-qualifying income), foreign companies with a permanent establishment in the UAE
• Free Zone Incentives: Companies in free zones can still benefit from a 0% tax rate on qualifying income if they meet the conditions.

Why Businesses Need Corporate Tax Support

The introduction of corporate tax marks a significant change for companies in the UAE. For many, it brings new compliance requirements and financial considerations that cannot be overlooked.

A qualified corporate tax consultant helps you:

• Register with the Federal Tax Authority (FTA)
• Assess your company’s tax obligations and residency status
• Calculate taxable income accurately
• File annual tax returns on time
• Maintain proper accounting and audit-ready records
• Avoid penalties for errors or delays
• Develop strategies to reduce tax exposure

Whether you’re running a small enterprise or managing a multinational, expert guidance ensures your business remains compliant and financially efficient.

Corporate Tax Services Offered

Here’s how professional consultants can support your business:

Service	What It Covers
Tax Registration	Handling FTA registration for your company
Tax Advisory & Planning	Strategic guidance to legally minimize liability
Accounting & Bookkeeping	Maintaining accurate financial records for compliance
Tax Return Filing	Preparing and submitting annual returns
Transfer Pricing Compliance	Support for cross-border transactions
Audit Preparation	Ensuring readiness for tax authority audits
Free Zone Tax Optimization	Structuring operations to maintain 0% qualifying income

Who Must Comply with Corporate Tax?

Corporate tax applies to a wide range of businesses in the UAE, including:

• Mainland LLCs and civil companies
• Free zone entities (on non-qualifying income)
• Foreign companies with UAE operations
• Licensed individuals conducting commercial activities
• Offshore companies with a UAE presence

Even businesses that qualify for the 0% rate may still need to register and file returns to remain compliant.

Strategic Tax Planning in the UAE

Tax planning isn’t just about filing correctly—it’s about positioning your business for long-term success. A corporate tax consultant can help you:

• Identify allowable deductions and exemptions
• Optimize business structures for tax efficiency
• Use the UAE’s double taxation treaties to reduce international tax burdens
• Plan for growth with tax-smart strategies

This approach is especially valuable for companies in real estate, consultancy, trading, and cross-border services.

Common Challenges Without Guidance

Businesses often run into issues such as:

• Misreporting or misclassification of income
• Missing registration deadlines
• Incorrect or incomplete filings
• Weak recordkeeping
• Overlooking exemptions or tax reliefs

These mistakes can result in fines, reputational damage, and lost opportunities. A corporate tax consultant ensures you avoid these risks.

Why Work With a Tax Consultant?

By working with a dedicated consultant, you gain:

• Tailored tax advice based on your business model
• Full support with registration, filing, and compliance
• Proactive strategies to minimize liability
• Coordination with accountants and auditors
• Ongoing updates on changing regulations

Whether you’re setting up a new company or managing an established operation, professional support gives you peace of mind.

Take Control of Corporate Tax Compliance

Corporate tax is now part of doing business in the UAE. With the right support, you can remain compliant, avoid penalties, and plan for sustainable growth.

📞 Get in touch today for a consultation and build a corporate tax strategy designed for your business.