Corporate Taxation

UAE Corporate Tax Services

With the implementation of the new UAE corporate tax law, numerous companies are faced with navigating unfamiliar regulations and procedures. Our team of tax specialists is poised to assist you in understanding the application of corporate tax to your business, leveraging tax exemptions and reliefs, and ensuring timely compliance with regulatory deadlines to prevent penalties.

What is UAE Corporate Tax and Who Should Pay It?

Corporate tax, often abbreviated as CT, represents a direct tax imposed on the net income or profits generated by corporations and other entities through their business activities. This taxation framework is governed by Federal Decree-Law No.60 of 2023, which amended specific provisions of Federal Decree-Law No. 47 of 2022 concerning the Taxation of Corporations and Businesses.

UAE Corporate Tax applies to a wide range of entities and activities within the UAE:

  • All businesses and individuals conducting commercial activities under a valid commercial license in the UAE.

  • Free zone businesses (while continuing to uphold existing UAE Corporate Tax incentives for compliant free zone entities not engaging in mainland UAE business setup).

  • Foreign entities and individuals engaged in ongoing or regular trade or business activities within the UAE.

  • Banking operations and businesses involved in real estate management, construction, development, agency, and brokerage activities.

UAE Corporate Tax Rates

As per Ministry of Finance, CT rates are as follow:

  • Taxable income up to AED 375,000 incurs a 0% tax rate.

  • Taxable income exceeding AED 375,000 faces a 9% tax rate.

  • Large multinationals meeting specific criteria, referencing 'Pillar two' of the OECD Base Erosion and Profit Shifting Project, will be subject to a separate, yet-to-be-specified tax rate.

Is there any exemption in corporate taxation?

The following are exempted from UAE Corporate Tax:

  • Businesses engaged in natural resource extraction remain exempt, maintaining their current Emirate-level corporate taxation.

  • Dividends and capital gains derived by UAE businesses from qualifying shareholdings are exempt from UAE Corporate Tax.

  • Qualifying intra-group transactions and reorganizations are exempt, subject to meeting specified conditions.

Moreover, UAE Corporate Tax does not apply to:

  • Individuals earning salaries and other employment income, whether from the public or private sectors.

  • Interest and other income derived by individuals from bank deposits or savings schemes.

  • Foreign investors' income from dividends, capital gains, interest, royalties, and other investment returns.

  • Personal real estate investments by individuals.

  • Dividends, capital gains, and other income from personal ownership of shares or securities.

uae corporate tax

“What should I do to be compliant?”

This is a very common question from most business owners. Ensuring Corporate Tax compliance is essential for businesses to maintain financial integrity and avoid potential penalties. By adhering to tax regulations and deadlines, businesses demonstrate their commitment to transparency and accountability, fostering trust with stakeholders and regulatory authorities. Failure to comply with tax obligations can result in hefty fines, legal repercussions, and reputational damage.

Every business operating in the UAE must undertake the following three essential steps to adhere to the new UAE corporate tax scheme.

1

Register

Register for UAE corporate tax in the Federal Tax Authority

2

Maintain

Maintain an accurate book of accounts according to prescribed standards

3

Submit

Submit UAE Corporate Tax returns to the FTA

TheLeadingLink provides comprehensive corporate taxation services tailored to meet the unique needs of businesses in the UAE. With a team of experienced professionals and a commitment to excellence, we strive to simplify the complexities of corporate taxation and ensure compliance with regulatory requirements. Our experts provide personalized consultation services to help businesses understand their corporate tax obligations and optimize their tax strategies. From determining tax residency status to identifying eligible deductions and credits, we offer strategic guidance to minimize tax liabilities while maximizing tax savings.

TheLeadingLink Corporate Tax Services

Consultation

Our team of experts will provide on corporate tax matters including exploring potential exemptions applicable to your business and strategies to capitalize on them effectively

CT Registration

Our team will support you in the registration process for UAE corporate tax with the Federal Tax Authority (FTA) and ensure timely management of all your corporate tax obligations, including meeting deadlines.

Tax Return Submissions

Our team will evaluate your corporate tax position and will handle all required submissions with the Federal Tax Authority (FTA) throughout the year.

Be in the know. Be compliant.