Corporate Tax UAE
Meet your business’s custom tax requirement with our end-to-end Corporate Tax (CT) services in UAE. The recent CT regulatory framework requires businesses operating in the UAE to meet the tax law requirements. We, as a top Corporate Tax services provider, assist small businesses and large enterprises comply with the regulations, optimizing the taxation flow, and streamlining business operations. We offer comprehensive services including financial statement and record management, tax planning, filing, registration, and advisory that align with the guidelines provided by the UAE Federal Tax Authority.
The tax requirements keep on amending as per new demands and therefore it is important to keep up with the changes. On January 31, 2022, the regulatory landscape again shifted where the Ministry of Finance (MoF) made the breakthrough announcement to implement the new CT requirements in the UAE, effective from 1 June 2023.
The Corporate Tax (CT) system in the United Arab Emirates has been carefully crafted to minimize the cost of compliance on firms while conforming to international best practices. It seeks to create an atmosphere that is favorable to investment and economic expansion while preserving equity and openness.
A variety of Taxable Persons,” such as UAE corporations and other legal entities, people (natural persons) that conduct business, and foreign legal entities that are present in the UAE and are regarded as non-resident juridical persons, are subject to the corporate tax
Benefits of Corporate Tax in Dubai The UAE corporate tax law adheres to international standards, including OECD’s BEPS program, enhancing the country's reputation as a reliable business hub.
Low Tax Rate
Corporate tax is set at a competitive 9%, that applies only to taxable income above AED 375,000, benefiting smaller businesses and start-ups.
Relief for Small Businesses
Companies with profits below AED 375,000 are exempt from corporate tax, supporting the growth of small and medium-sized enterprises.
Free Zone Tax
Businesses in UAE Free Zones enjoy tax holidays, 100% foreign ownership, simplified customs, and world-class infrastructure.
Incentives
Tailored tax rates for different sectors, like the oil industry, allow for a more balanced and strategic economic development.
How We Can Help You? With over a decade of delivering high-quality services, we are recognized as one of Dubai’s most preferred auditing firms.
Free Zone Expertise
As approved auditors in major Dubai free zones, we simplify the audit process for businesses operating within these zones.
Relief for Small Businesses
Companies with profits below AED 375,000 are exempt from corporate tax, supporting the growth of small and medium-sized enterprises.
Experienced Auditors
Our team of professionals brings over a decade of expertise, providing reliable and efficient audit and corporate tax consultant services.
Proven Track Record
Our long-standing experience and commitment to excellence have made us a trusted partner for businesses seeking expert auditing and accounting solutions.
Expertly Navigating Accountancy with Government Agencies
Scope of UAE Corporate Tax
- Domestic businesses in the UAE must pay corporate tax.
- The Corporate Tax regime also applies to foreign businesses that have a permanent establishment (PE) in the United Arab Emirates.
- Non-resident businesses that operate in the UAE or get revenue from UAE sources will be subject to taxes.
- With several exceptions, resident companies—both local and foreign—that are managed and controlled in the United Arab Emirates are subject to worldwide income tax.
- Subject to certain exclusions, non-resident entities are only taxed on profits and revenue originating in the United Arab Emirates that are connected to a permanent establishment.
Our Corporate Tax Process
Tax Assessment & Planning
Evaluation of your business structure and crafting a tailored tax strategy to minimize liabilities while ensuring compliance.
Documentation & Filing
Accurate record-keeping and timely submission of Corporate Tax returns in line with UAE regulations.
Ongoing Support
Continuous support, including regular reviews and updates to your tax strategy for ongoing compliance.
FAQ's
Is Uae tax-free for companies?
The UAE offers a zero percent tax rate on annual taxable profits up to AED 375,000. Any taxable profits exceeding AED 375,000 will be subject to a 9% tax rate.
Who is exempted from corporate tax in the UAE?
Certain entities are exempt from corporate tax in the UAE, including government entities, government-controlled companies, extractive businesses (such as oil and gas companies), and non-extractive natural resource businesses, provided they meet specific criteria.
What is the minimum corporate income tax?
The minimum corporate income tax in the UAE is 0%. This applies to businesses with annual taxable profits of up to AED 375,000, which are subject to a zero percent tax rate. Profits exceeding AED 375,000 are taxed at 9%.
Is corporate tax mandatory in the UAE?
Yes, corporate tax is mandatory in the UAE for businesses that exceed the threshold of AED 375,000 in annual taxable profits.
What is the difference between tax and VAT in UAE?
Yes, corporate tax is mandatory in the UAE for businesses that exceed the threshold of AED 375,000 in annual taxable profits.
What is the corporate tax rate for the free zone in UAE?
VAT is applied to the consumption of goods and services, impacting the end consumer, while corporate tax is levied on the profits of businesses, affecting corporate behavior and investment decisions.
What is the corporate tax rate for the free zone in UAE?
The UAE Federal Tax Authority (FTA) has issued a corporate tax guide outlining the free zone regime, under which qualifying free zone entities benefit from a 0% corporate tax rate on qualifying income, with a 9% tax rate applied to other taxable income.
If you are ready to keep your company ahead of all your competitors, we’ve got you covered. Align all your financial decisions by taking advantage of our auditing and assurance services in the UAE and achieve the maximum transparency. So what are you waiting for?