UAE Corporate Tax Advisory & FTA Compliance Services

Optimise Your Tax Position. Ensure Full FTA Compliance.

The 9% Corporate Tax regime is now fully active. We manage your registration, impact assessment, and annual return filing to prevent penalties and maximise legal exemptions.

Check Your Tax Liability

Understanding UAE Corporate Tax Law & Rates

Corporate Tax (CT) is a direct tax levied on the net income or profit of corporations and business entities. The implementation of Federal Decree-Law No. 47 of 2022 established this framework, shifting the UAE into a formal tax environment. G12 provides technical advisory to ensure your entity meets all Federal Tax Authority (FTA) requirements while effectively utilising legal reliefs.

  • Tax Basis: The tax applies to the adjusted accounting net profit of the business as reported in the financial statements.
  • 0% Tax Rate: Applied to taxable income up to AED 375,000 to support small business sustainability.
  • 9% Standard Rate: Applied to all taxable income exceeding the AED 375,000 threshold.
  • 15% MNC Rate: Specific to large multinational corporations with global revenues above EUR 750 million (Pillar Two rules).
  • Compliance Scope: Businesses must accurately assess operational costs and register with the FTA to avoid administrative penalties.

Corporate Tax Assessment & Scope

Understanding the scope of the law is critical for compliance. The tax applies to “Taxable Persons,” which includes:

 

  • UAE Resident Persons: Companies incorporated in the UAE (Mainland and Free Zone) and foreign companies effectively managed and controlled within the UAE.
  • Non-Resident Persons: Foreign entities that have a Permanent Establishment (PE) in the UAE or derive state-sourced income.
  • Natural Persons: Individuals engaged in business or commercial activity in the UAE with an annual turnover exceeding AED 1 million.


G12 conducts comprehensive impact assessments to determine your exact status and liability under the law.

Corporate Tax Exemptions

Specific entities are exempt from Corporate Tax due to their contributions to the UAE’s social fabric or its strategic economic importance. These exemptions often require formal application and approval from the FTA or the Ministry of Finance.

 

Automatically Exempt Entities:

 

Government Entities.
Government Controlled Entities.

 

Entities Exempt Upon Application:

 

Extractive Businesses (Oil & Gas).
Non-Extractive Natural Resource Businesses.
Qualifying Public Benefit Entities (Charities).
Qualifying Investment Funds.
Public Pension or Social Security Funds.

Corporate Tax for Free Zones

Free Zone companies do not receive a blanket exemption. To benefit from the 0% Corporate Tax rate, a Free Zone entity must qualify as a “Qualifying Free Zone Person” (QFZP).


Conditions to Maintain 0% Rate:


Maintain adequate substance in the UAE (staff and assets).
Derive “Qualifying Income” as specified by Cabinet Decisions.
Comply with Transfer Pricing regulations.
Prepare audited financial statements.


If a Free Zone entity earns “Non-Qualifying Income” (such as trading directly with Mainland UAE customers), the standard 9% rate may apply to the entire income. G12 analyses your revenue streams to protect your QFZP status.

Calculating Corporate Tax Liability

The calculation involves adjusting your accounting net profit (profit/loss per the financial statements) to arrive at “Taxable Income.”


The Calculation Process:


Step 1: Determine Accounting Net Profit.
Step 2: Add back non-deductible expenses (e.g., fines, bribes, 50% of entertainment costs).
Step 3: Deduct exempt income (e.g., dividends, capital gains).
Step 4: Apply the AED 375,000 threshold.
Result: Apply 9% tax to the remaining amount.

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5. Accounting & Financial Record Maintenance

Proper bookkeeping is now mandatory for tax purposes. We review your accounting standards (IFRS) to ensure they meet FTA requirements for tax assessment.

Our Corporate Tax Services

G12 provides end-to-end support to navigate the complexities of the tax law. We act as your tax agents, handling all interactions with the FTA.

1. Corporate Tax Registration

We manage the enrollment process on the EmaraTax portal for Mainland, Free Zone, and Offshore entities to obtain your Tax Registration Number (TRN).

2. Return Filing & Compliance

Taxable persons must file one tax return per tax period. We prepare and submit these returns within the 9-month deadline, ensuring accuracy to avoid audit flags.

3. Transfer Pricing (TP) Documentation

We prepare the required Master File and Local File for businesses involved in related-party transactions, ensuring that all intercompany dealings adhere to the Arm’s-Length Principle.

4. Tax Grouping Services

We assist eligible parent companies and subsidiaries in forming a Tax Group. This allows a single consolidated return to be filed and losses to be offset between group members.

Why Choose G12 for Tax Advisory?

Strategic Precision:

We focus on legal tax optimisation, not just data entry.

Audit Defence:

Our filings are prepared with the expectation of an audit, ensuring all evidence is in place.

Updated Knowledge:

We constantly monitor Ministry of Finance updates to keep your business compliant with the latest decisions.

Risk Mitigation:

We identify exposure points in your supply chain and corporate structure early.

Secure Your

Financial Compliance.

Don’t let tax complexities disrupt your growth. We manage the regulations so you can focus on profitability.

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Frequently Asked Questions

When is the Corporate Tax return due?

The Corporate Tax return must be filed no later than nine months following the end of the relevant tax period. For example, if your financial year ends in December, your filing deadline is September of the following year.

Yes. All Free Zone Persons must register for Corporate Tax and obtain a TRN, even if they are eligible for the 0% rate on Qualifying Income.

Generally, Corporate Tax must be paid in a single lump sum at the time of filing the return. The law does not currently provide for standard installment plans for annual tax liability.

The Federal Tax Authority imposes an administrative penalty of AED 10,000 for failing to submit a Tax Registration application within the specified timelines.

Dividends and other profit distributions received from UAE resident legal persons are generally exempt from Corporate Tax to prevent double taxation.
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