The UAE introduced corporate tax effective from June 1, 2023, marking a significant shift in the country's tax landscape. This comprehensive guide covers everything businesses need to know about the new 9% corporate tax regime.
What is UAE Corporate Tax?
UAE Corporate Tax is a federal tax imposed on the net income or profit of corporations and other businesses. The standard rate is 9% on taxable income exceeding AED 375,000. Small businesses and startups with profits under this threshold enjoy a 0% tax rate.
!Tax calculation and financial analysis
Who Needs to Register?
- All UAE mainland businesses
- Free zone companies (qualifying income remains tax-free)
- Branches of foreign companies
- Businesses engaged in natural resource extraction
- Government entities and government-controlled entities
- Extractive businesses (subject to Emirate-level taxation)
- Non-extractive natural resource businesses
- Qualifying public benefit entities
Key Exemptions
Certain entities remain exempt from corporate tax:
Registration Process
Businesses must register through the Federal Tax Authority (FTA) portal. Our team can assist with the entire registration process, ensuring all documentation is correctly submitted and your business remains compliant.
Important Deadlines
Corporate tax returns must be filed within 9 months from the end of the financial year. Penalties apply for late filing or non-compliance, starting at AED 10,000.
