Corporate Tax in the UAE

Navigate the UAE’s new corporate tax regime with confidence. Expert guidance ensures your business stays compliant, minimizes liabilities, and thrives in a transparent, investor-friendly environment.

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Corporate Tax in the UAE: Clear Guidance. Full Compliance. Confident Growth.

The introduction of corporate tax in the UAE marks a major shift in the country’s business landscape. For decades, the UAE was known as a tax-free hub — but as the economy matured, the government introduced corporate tax to align with international standards, enhance transparency, and ensure sustainable development.

Many businesses, especially small and medium enterprises (SMEs), are still adapting to the change. The challenge lies in understanding who needs to register, how to file, and how to stay compliant while managing operations efficiently.

Expert guidance becomes essential — to help you comply, avoid penalties, and make the most of available tax benefits.

Understanding the Purpose and Objectives of Corporate Tax in the UAE

The main purpose of introducing corporate tax is not just revenue collection — it’s about strengthening the UAE’s global reputation as a transparent, compliant, and investor-friendly country.

Key Objectives Include:

Promoting business transparency and accountability
Aligning the UAE with international tax practices (like OECD standards)
Preventing profit shifting and tax evasion
Supporting the UAE’s economic diversification strategy
Ensuring a fair contribution from profitable businesses

Who Is Subject to Corporate Tax in the UAE?

Corporate tax applies to most businesses operating within the UAE. However, some entities enjoy exemptions or special tax treatment depending on their activities and location.

Subject to Corporate Tax:

Exempt from Corporate Tax:

If your company earns profits in the UAE, it’s likely subject to corporate tax — even if you operate in a free zone.

Key Features and Structure of the UAE Corporate Tax System

Tax Rate: 9% on taxable income above AED 375,000
Tax-Free Threshold: 0% on income up to AED 375,000 (to support SMEs)
Small Business Relief: Available for businesses earning below AED 3 million
Qualifying Free Zone Persons (QFZP): 0% on qualifying income, 9% on non-qualifying income
Single Annual Filing: Only one tax return needs to be filed per year
FTA Supervision: All compliance is regulated by the Federal Tax Authority

Core Features Include:

The UAE corporate tax regime is designed to be simple, fair, and globally competitive.

Important Considerations for Businesses Under UAE Corporate Tax Law

1. Accurate Recordkeeping: Maintain financial records for at least seven years.
2. Accounting Standards: Financial statements must follow IFRS.
3. Timely Filing: Submit your corporate tax return within nine months of your financial year-end.
4. Penalties: Late registration, errors, or non-compliance can lead to fines.
5. Group Taxation: Corporate tax groups can file a single return if approved by FTA.

Key Considerations:

Complying with UAE corporate tax laws goes beyond just registration. Businesses must follow certain accounting and recordkeeping standards to remain compliant.

How to Register for Corporate Tax in the UAE

Registering for corporate tax is the first and most crucial step toward compliance. Every eligible business must register with the Federal Tax Authority (FTA) and obtain a Tax Registration Number (TRN).

Registration Process:

1. Create an FTA Account: Log in to the official FTA e-Services portal.
2. Submit Application: Enter your business details and license information.
3. Upload Required Documents: Include your trade license, Emirates ID, and financial data.
4. FTA Review: The application is reviewed, and approval is issued.
5. Receive TRN Certificate: This confirms your registration and tax eligibility.

⏱️ Most registrations are processed within 5–10 working days if submitted correctly.

Step-by-Step Process for Corporate Tax Filing in the UAE

Once registered, businesses must file their annual corporate tax return through the FTA portal.

Filing Steps:

1. Collect Financial Records: Prepare audited financial statements.
2. Calculate Taxable Income: Deduct eligible expenses and apply exemptions.
3. Prepare Tax Return: Fill out the FTA tax return form online.
4. Review & Submit: Double-check figures and file within the deadline.
5. Pay Tax Due: Settle payments directly via the FTA system.

Businesses must also retain documentation in case of FTA audits or reviews.

Corporate Tax in Dubai: What Makes It Unique?

Dubai remains one of the UAE’s most attractive business destinations — and its approach to corporate tax reflects its pro-business philosophy.

Key Points for Dubai Businesses:

Many Free Zones in Dubai offer 0% tax on qualifying income.
The Dubai FTA office provides full digital support for registration and filing.
Dubai continues to attract foreign investors due to its infrastructure and ease of doing business.
4. FTA Review: The application is reviewed, and approval is issued.
5. Receive TRN Certificate: This confirms your registration and tax eligibility.

However, even Dubai-based companies must ensure timely corporate tax registration and filing to maintain their reputation and avoid fines.

🏙️ Dubai offers world-class opportunities — but compliance is key to sustaining success.

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Why do I need professional accounting services for my business?

Accounting keeps your finances organized, ensures compliance, and helps you make better business decisions.

What services are included in your accounting package?

Our services cover bookkeeping, financial reporting, payroll, tax filing, VAT compliance, and more depending on your needs.

How often should I hire an accountant – monthly or yearly?

Most businesses need monthly accounting, but we also offer quarterly and yearly services based on your requirements.

Do you provide bookkeeping as well as full accounting?

Yes, we handle both. Bookkeeping records your daily transactions, and accounting provides detailed reports and insights.

Can you manage tax filing and VAT returns for my business?

Yes, we prepare and file your taxes and VAT returns on time, ensuring compliance with all laws.

Will I get financial reports for my business?

Yes, we prepare clear and accurate financial statements to help you understand your business performance.

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Yes, we manage salaries, deductions, and benefits to ensure your staff gets paid correctly and on time.

Can you work with small businesses and startups?

Absolutely. We provide cost-effective accounting solutions tailored for small businesses and startups.

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