Home / Tax Accounting
UAE Corporate Tax Services
The UAE introduced Federal Corporate Tax under Federal Decree-Law No. (47) of 2022, establishing a comprehensive corporate tax framework for businesses operating within the country. The Corporate Tax regime applies to financial years beginning on or after 1 June 2023 and is administered by the Federal Tax Authority (FTA). The objective is to align the UAE with international tax standards while maintaining its position as a competitive business destination.
Key Features of UAE Corporate Tax
- A standard Corporate Tax rate of 9% applies to taxable profits exceeding AED 375,000.
- Taxable income up to AED 375,000 is subject to a 0% tax rate, supporting small businesses and startups.
- All taxable entities, including eligible Free Zone companies, must obtain a Corporate Tax Registration Number (TRN).
- Businesses are required to submit an annual Corporate Tax Return and comply with reporting obligations.
- Qualifying Free Zone Persons may continue to benefit from a 0% Corporate Tax rate on qualifying income, subject to meeting the prescribed conditions.
- Transfer Pricing regulations apply to transactions between related parties and connected persons, requiring proper documentation and compliance with OECD guidelines.
Who Must Register for UAE Corporate Tax
- Companies incorporated or established in the UAE.
- Businesses that are effectively managed and controlled within the UAE.
- Foreign entities operating through a Permanent Establishment in the UAE.
- Individuals conducting business activities in the UAE through sole establishments, partnerships, or other business structures.
Entities Exempt from Corporate Tax
- UAE Federal and Emirate Government entities and public authorities.
- Government-owned entities carrying out designated activities approved by the Cabinet.
- Businesses engaged in the extraction of natural resources and related activities subject to Emirate-level taxation.
- Approved public benefit organizations.
- Qualifying investment funds.
- Eligible pension and social security funds.
- Wholly owned UAE entities that meet the conditions for exemption through ownership by qualifying exempt entities.
How We Can Help
Our tax professionals provide practical guidance and support to help businesses understand and comply with UAE Corporate Tax requirements. We assist with Corporate Tax registration, tax assessments, compliance reviews, return filing, transfer pricing documentation, and ongoing advisory services. We also keep clients informed about the latest tax developments, helping businesses remain compliant while managing their tax obligations efficiently and confidently.