CORPORATE TAX SERVICES IN UAE
Corporate tax in the UAE is a big step toward aligning with global tax practices. For businesses, understanding corporate tax laws and staying compliant is now more important than ever. Our expert corporate tax services in UAE help you navigate these changes smoothly, keeping your business compliant and stress-free.
Understanding Corporate Tax in the UAE
The UAE introduced a corporate tax to create a sustainable and diversified economy. With a standard corporate tax rate of 9%, businesses earning above the taxable threshold must register and pay tax on their profits. However, many small businesses and startups may still qualify for exemptions.
Corporate tax applies to all businesses operating in the UAE, including mainland companies and free zone entities that do not meet specific exemption conditions. Knowing where your business stands is the first step to compliance.
Steps to Comply with the New Corporate Tax in the UAE
With the new corporate tax system now active in the UAE, every business needs to take a few essential steps to stay compliant. Even if your business isn’t currently taxable, following these steps is still required to avoid any future issues.
Step 1: Register for Corporate Tax in UAE
Starting from June 2023, all businesses in the UAE must register for corporate tax. This applies even if your business currently falls below the taxable income threshold. Registration is a mandatory process and shows that your business is proactive in following the law. Our team helps you handle the corporate tax registration in UAE smoothly through the FTA portal.
Step 2: Maintain Proper Accounting Records
Keeping accurate financial records is more important than ever. Your books should meet the required standards, like the International Financial Reporting Standards (IFRS). Good record-keeping ensures transparency and helps you track your business performance clearly. It also prepares you for any future audits or reviews by the authorities.
Step 3: File Your Corporate Tax Return with the FTA
Regardless of whether you owe corporate tax, you must file a corporate tax return with the Federal Tax Authority (FTA UAE). This filing includes your financial details and confirms your compliance with UAE corporate tax regulations. Filing on time avoids penalties and keeps your business in good standing.
Why These Steps Matter
Even if your business is currently exempt from corporate tax, following these steps is crucial. It keeps your business ready for future changes and helps determine if you qualify for any tax benefits later on. Staying ahead with your compliance ensures a smooth journey under the new corporate tax framework in the UAE.
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What is Corporate Tax UAE?
In the UAE, corporate tax applies to businesses that are based in the country and is calculated on their net profit. The UAE’s new tax reforms officially started on June 1, 2023, with most companies becoming fully taxable from January 1, 2024.
The Background of Corporate Tax in the UAE
The UAE has always been a preferred destination for business owners and investors worldwide. With its stable economy, strong global connections, and modern infrastructure, the country — especially Dubai — continues to attract both global corporations and ambitious startups.
Historically, the UAE built its success on oil and natural resources. However, in recent years, the country has smartly diversified its economy, creating new opportunities across various sectors. The introduction of corporate tax in the UAE is part of this shift. It aims to strengthen the nation’s revenue base, support long-term growth, and align the UAE with international tax standards.
This move marks a major change from the traditional tax-free environment the region was known for. Today, businesses in Dubai and across the UAE must prepare for this new phase, ensuring full corporate tax compliance UAE to operate smoothly in the evolving business landscape.
Difference Between Corporate Tax and VAT in the UAE
When the UAE government first announced plans for corporate tax, many businesses mistakenly thought it was the same as VAT. But the two are very different.
VAT is a tax on goods and services, paid by customers at the point of purchase. It only applies to businesses that cross a certain turnover threshold. Corporate tax in UAE, however, is based on a company’s taxable income and applies to all businesses, regardless of their sales volume.
While VAT is collected from customers and passed to the government, corporate tax is paid directly by the business from its annual net profits. The tax is calculated based on net income, not total sales or revenue.
Understanding this difference is important for proper corporate tax compliance UAE. With this clarity, let’s take a closer look at how corporate tax is calculated and applied to businesses in the UAE.
Who Needs to Pay Corporate Tax in UAE?
Not every business is required to pay corporate tax, but knowing the rules helps you avoid unexpected penalties.
Taxable Entities Under UAE Corporate Tax Law
Corporate tax in UAE applies to:
- Mainland companies with taxable income over AED 375,000
- Free zone companies that do not qualify for exemptions
- Foreign companies earning income from the UAE
- Any individual conducting business in the UAE under a commercial license
Our corporate tax consultants in Dubai will help you determine if your business falls under the taxable category.
Businesses Exempt from Corporate Tax
Certain businesses enjoy exemptions, including:
- Extractive industries (such as oil and gas) are already taxed at the emirate level
- Government entities
- Investment funds meeting the qualifying criteria
- Non-resident businesses with no permanent establishment in the UAE
Understanding exemptions is crucial for accurate corporate tax filing UAE and compliance.
How We Help with Corporate Tax Compliance UAE
Handling corporate tax goes beyond filing returns. Our experts manage your full compliance journey, making sure your business meets every legal requirement.
Corporate Tax Registration UAE
We help you register your business for corporate tax through the FTA UAE portal. Our team ensures all documents are correctly prepared for smooth approval.
Corporate Tax Filing and Reporting
Our specialists handle your corporate tax return filing in UAE accurately and on time. We review your financial records, calculate taxable income, and submit your returns before the deadline.
Tax Advisory and Planning
We offer expert advice to structure your business efficiently. Our tax planning services help you understand deductions, exemptions, and strategies to reduce your corporate tax liability in the UAE.
Corporate Tax Rates and Deadlines in UAE
Staying updated on tax rates and deadlines is essential to avoid fines and maintain compliance.
Understanding the Corporate Tax Rate UAE
The standard corporate tax rate in the UAE is set at 9% for taxable income above AED 375,000. For small businesses under this threshold, a 0% rate may apply, but registration and filing are still required.
Corporate Tax Filing Deadlines
Businesses must file their corporate tax return within nine months after the end of their financial year. Missing the deadline can result in heavy fines and interest.
Get Started with Expert Corporate Tax Services in UAE
Don’t let corporate tax become a burden for your business. With the right guidance, you can stay compliant and focus on growing your business in Dubai and beyond.
Book Your Free Consultation Today
Reach out to our team for a free consultation. We’ll explain your tax obligations, help with registration, and manage your corporate tax compliance UAE smoothly and efficiently.