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Corporate Tax in the UAE –
What You Need to Know
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To be the most reliable and respected auditing and tax firm in the UAE.
What is Corporate Tax?
Corporate Tax is a direct tax imposed on the profits of businesses. In the UAE, a federal Corporate Tax regime was introduced starting from June 1, 2023, as part of the government’s efforts to align with international tax standards and drive economic sustainability.
The standard Corporate Tax rate in the UAE is 9% on taxable income exceeding AED 375,000.
Income below AED 375,000 is tax-exempt, promoting support for startups and small businesses.
The tax applies to both local and foreign companies operating in the UAE under specific conditions.
Who is Subject to It?
Corporate Tax in the UAE applies to a wide range of entities, including:
Mainland companies registered and operating within the UAE.
Free zone entities, unless they qualify as a “Qualifying Free Zone Person” under specific criteria.
Foreign companies with a Permanent Establishment (PE) in the UAE.
Freelancers and sole proprietors, if their annual business income exceeds AED 375,000.
Multinational enterprises (MNEs) meeting OECD’s Pillar Two requirements may be subject to Global Minimum Tax rules.
Who is Subject to It?
Corporate Tax in the UAE applies to a wide range of entities, including:
Mainland companies registered and operating within the UAE.
Free zone entities, unless they qualify as a “Qualifying Free Zone Person” under specific criteria.
Foreign companies with a Permanent Establishment (PE) in the UAE.
Freelancers and sole proprietors, if their annual business income exceeds AED 375,000.
Multinational enterprises (MNEs) meeting OECD’s Pillar Two requirements may be subject to Global Minimum Tax rules.
How We Help
Navigating the new UAE Corporate Tax landscape can be complex. We provide end-to-end support to ensure your business remains compliant and penalty-free:
Corporate Tax registration with the Federal Tax Authority (FTA)
Tax planning and advisory to legally minimize your tax burden
Timely return filing and submission of financial statements
Transfer pricing documentation for businesses with related-party transactions
Ongoing compliance monitoring and audit support
De-registration services when closing or restructuring a business
Our goal is to handle your tax compliance, so you can focus on growing your business with confidence.
Common Mistakes to Avoid
Failing to comply with Corporate Tax regulations can lead to serious penalties. Common mistakes we help our clients avoid include:
Missing registration deadlines or registering incorrectly
Incorrect classification of income and expenses
Failure to apply transfer pricing rules for related-party transactions
Poor financial record-keeping or lack of supporting documentation
Late filing or non-submission of tax returns
Assuming free zone entities are always exempt without checking qualifying status
We ensure your tax practices are accurate, timely, and aligned with UAE laws—avoiding costly errors and maintaining a clean record with the FTA.