Corporate tax (CT) in UAE
Introduction about Corporate tax
What is Corporate tax (CT)?
Corporate tax is a form of direct tax levied on the net income or profit of corporations and other entities from their business. Corporate tax is governed by Federal Decree-Law No.60 of 2023 Amending Certain Provisions of the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.
Businesses will become subject to UAE Corporate Tax from thebeginning of their first financial year that starts on or after 1 June 2023.
Scope of Corporate Tax in UAE
CT will apply to:
- All businesses and individuals conducting business activities under a commercial licence in the UAE
- Free zone businesses (The UAE CT regime will continue to honour the CT incentives currently being offered to free zone businesses that comply with all regulatory requirements and that do not conduct business set up in the UAE’s mainland.)
- Foreign entities and individuals only if they conduct a trade or business in the UAE in an ongoing or regular manner
- Banking operations
- Businesses engaged in real estate management, construction, development, agency and brokerage activities.
Exemptions from CT
Below are the rules regarding exemptions from the corporate tax
- Businesses engaged in the extraction of natural resources are exempt from CT as these businesses will remain subject to the current Emirate level corporate taxation.
- Dividends and capital gains earned by a UAE business from its qualifying shareholdings will be exempt from CT.
- Qualifying intra-group transactions and reorganizations will not be subject to CT, provided the necessary conditions are met.
CT will not apply to:
- An individual earnings salary and other employment income, whether received from the public or the private sector
- Interest and other income earned by an individual from bank deposits or saving schemes
- A foreign investor’s income earned from dividends, capital gains, interest, royalties and other investment returns
- Investment in real estate by individuals in their personal capacity
- Dividends, capital gains and other income earned by individuals from owning shares or other securities in their personal capacity.
CT Rate
- 0 per cent for taxable income up to AED 375,000
- 9 per cent for taxable income above AED 375,000 and
- a different tax rate (not yet specified) for large multinationals
that meet specific criteria set with reference to ‘Pillar two’ of
the OECD Base Erosion and Profit Shifting Project.
CORPORATE TAX REGISTRATION DEADLINE
Register within 90 days from the license issue date.
All taxable persons in the UAE must apply to register for Corporate Tax with the Federal Tax Authority (FTA). Newly incorporated entities must register within 90 days of obtaining their trade license. Existing entities follow a tiered FTA registration timetable based on the month of license issuance.
Late Registration Penalty
- AED 10,000
Book for Corporate
Tax registration Service
Corporate Tax Registration Criteria:
All UAE Juridical Persons
LLCs, PSCs, PJSCs, free zone entities, branches and other legal persons incorporated in the UAE registration is mandatory regardless of turnover.
Natural Persons (Individuals)
Required to register if their annual business or business- related turnover exceeds AED 1 million in a Gregorian calendar year.
Non-Resident Persons
Must register if they have a Permanent Establishment (PE) in the UAE, derive State-Sourced Income, or have a nexus in the UAE.
Free Zone Persons
Must register and file CT returns even if claiming the 0% Qualifying Free Zone Person (QFZP) regime registration is not optional.
90-Day Deadline (New Entities)
Application must be submitted to the FTA within 90 days from the date of trade license issuance for newly incorporated
businesses.
Late Registration Penalty — AED 10,000
A fixed administrative penalty of AED 10,000 is imposed for failure to register within the specified timeframe.
Required Documents
Trade License, Emirates ID & Passport copies of all shareholders, MOA / valid POA, Manager contact details, and financial information for the first tax period.
Corporate Tax Packages
Stay tax compliant in the UAE with our exclusive packages, crafted specifically for small businesses earning under 3 million in annual turnover
Micro
Filing Lite
Features:
- Quarterly VAT Filing (4 returns)
- Annual Corporate Tax Return Filing
Micro Tax
Compliance
Features:
- Quarterly VAT Filing (4 returns)
- Annual Corporate Tax Return Filing
- Accounting Software (E-Invoicing com)
- VAT Registration
- Corporate Tax Registration
Micro Business
Compliance
Features:
- Quarterly VAT Filing (4 returns)
- Annual Corporate Tax Return Filing
- Accounting Software (E-Invoicing com)
- VAT Registration
- Corporate Tax Registration
- Accounting & Bookkeeping
- Financial Statements
- Statutory Audit
Zero Revenue
Features:
- Corporate Tax Return
- FTA portal review & submission
- Filing confirmation
- Basic support
+ Upgrade Available:
with financial report
& advisory
Revenue Below AED 3 Million
Features:
- Tax filing + management report
- IFRS-compliant financials
- SBR declaration (if eligible)
- Tax computation summary
+ Premium Option:
with statutory
audit
Revenue AED
3–5 Million
Features:
- Corporate tax filing
- Financial statements
- Compliance review
- Tax summary report
+ Premium Option:
with audit +
advisory
Revenue Above AED 5 Million
Features:
- Full tax & audit package
- Senior advisor consultation
- Compliance + structuring
- Strategic tax planning
+ Premium Option:
with audit +
advisory
Free Zone / QFZP Advisory
Features:
- Qualifying Income assessment
- Substance & activity testing
- De minimis test calculation
- QFZP eligibility opinion
Transfer Pricing & Documentation
Features:
- Master File & Local File preparation
- Disclosure form support
- Benchmarking studies
- Country-by-Country reporting
CT Audit & Reconsideration
Features:
- FTA VAT audit representation
- Voluntary disclosure preparation
- Reconsideration / appeal filings
- Penalty waiver applications
Book for Corporate Tax Registration Services
Toll Free Number: 800 TAX24
Whatsapp Chat : +971561620954
Email us : hello@tax24.ae
Your Questions Answered, Your Experience Made Easier
Find quick answers to common questions about our technology apps, helping you get started, troubleshoot issues, and make the most of every feature.
What is a "Business" or "Business Activity"?
Any economic activity, whether ongoing or short-term, conducted by any person — including industrial, commercial, agricultural, vocational, professional, service, or excavation activities, or any other use of tangible or intangible property.`
What is a Tax Period?
The Gregorian calendar year, or the 12-month period for which financial statements are prepared. The first tax period for most UAE businesses began on or after 1 June 2023.
What is the deadline for filing a CT return?
The Corporate Tax return must be filed and any CT payable settled within 9 months from the end of the relevant tax period — there is no requirement for advance/provisional payments.
Who is considered a Resident Person for UAE CT purposes?
Companies and other juridical persons incorporated, formed or otherwise recognised in the UAE — such as LLCs, PSCs, PJSCs, foundations, and free zone entities — are classified as Resident Persons. Natural persons conducting business in the UAE are also resident.
How are non-residents subject to UAE CT?
Non-residents are subject to UAE CT if they have a Permanent Establishment (PE) in the UAE, derive State-Sourced Income, or have a Nexus in the UAE (e.g., income from immovable property in the UAE).
What is a Qualifying Free Zone Person (QFZP)?
A Free Zone Person that maintains adequate substance, derives Qualifying Income, has not elected to be subject to CT at standard rates, complies with transfer pricing rules, and meets the de minimis requirement — eligible for 0% CT on Qualifying Income.