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Corporate TAX
Our skilled team of accountants and tax advisors will assist you in efficiently completing your corporate tax registration and filing on time.
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Corporate TAX
The UAE's new corporate tax law has left many companies dealing with unfamiliar regulations and procedures. Our team of tax experts is here to help you understand how corporate tax affects your business, take full advantage of available exemptions and reliefs, and ensure you meet compliance deadlines to avoid penalties. From registering your business for corporate tax and adhering to accounting standards to filing your tax submission, our team will guide you through every step, ensuring a smooth, efficient, and cost-effective process.
Corporate Tax Guidance: Our experts will provide advice on all corporate tax factors that may affect your business, including potential tax exemptions and how to maximize their benefits.
Corporate Tax Registration: Our team will help register your business for corporate tax with the FTA and handle all deadlines for your corporate tax obligations.
Corporate Tax Returns: Our team will evaluate your corporate tax situation, optimize your tax outcomes, and handle all required submissions to the FTA throughout the year.
Corporate tax in the UAE is imposed on the taxable income (net profit) of businesses operating within the country. The new corporate tax policies were implemented on June 1, 2023, with most businesses becoming fully taxable by January 1, 2024.
The UAE has long been a favored destination for global entrepreneurs and investors, thanks to its stable political environment, strategic location, excellent business infrastructure, and previously, a 0% corporate tax rate. As the fifth-largest economy in the Middle East, the UAE has been shifting away from reliance on oil revenue, according to the IMF.
Corporate tax and VAT in the UAE are distinct. Corporate tax is mandatory for all businesses, while VAT is only applicable once certain thresholds are met. VAT is a consumption tax on goods and services paid by the consumer, whereas corporate tax is based on the taxable income of the business.
All businesses in the UAE, including free zone companies, are generally subject to corporate tax, with some specific exemptions. This includes UAE-based corporations, individuals engaged in business activities, and foreign entities with a Permanent Establishment in the UAE. Tax obligations began on June 1, 2023, with the start of tax calculations depending on the business's financial year.
The UAE's Ministry of Finance has established a tiered corporate tax structure: a 0% rate for businesses with net yearly profits up to AED 375,000, a 9% rate for those with profits exceeding AED 375,000, and a minimum 15% rate for large multinational companies with global revenues over EUR 750 million, aligned with the OECD's Base Erosion and Profit Shifting Project.
Businesses must register for Corporate Tax through the Federal Tax Authority's (FTA) website by submitting required forms and documents, including Emirates ID, trade license, passport, financial records, and business activity details. Once submitted, the application will be reviewed, and if approved, the company will receive a tax registration number (TRN). Approval usually takes 20 days, with possible extensions for additional information.