Is corporate tax mandatory in the UAE?

Yes, corporate tax is mandatory in the UAE for businesses earning over AED 375,000 annually, starting June 2023.

What is the UAE corporate tax rate?

The standard corporate tax rate in the UAE is 9% on taxable profits exceeding AED 375,000.

Can G12 help file my corporate tax return?

Yes, G12 provides expert assistance in corporate tax registration, compliance, and filing in the UAE.

Does corporate tax apply to Free Zone companies?

Yes, but Free Zone entities can still benefit from 0% tax on qualifying income, subject to meeting specific criteria.

Expert Guidance in Corporate Tax Registration, Filing & Compliance

With the introduction of the UAE corporate tax law, all businesses operating in the country are now required to comply with a clearly defined tax framework. As of June 2023, this includes mandatory corporate tax registration, maintaining accurate financial records, and filing annual returns in accordance with legal deadlines.

Our tax consultants and accounting professionals offer end-to-end support in understanding your obligations under the new tax law and completing every compliance step with clarity, confidence, and precision. We work closely with businesses across the mainland and free zones to ensure they remain fully compliant with the evolving regulatory environment, minimising risks, avoiding penalties, and optimising tax efficiency.

What Does the UAE Corporate Tax Law Mean for Your Business?

The UAE corporate tax law introduced a 9% tax rate on business profits, aligning the country’s fiscal model with international taxation standards. For many companies, especially those operating under a previously 0% tax regime, this change has introduced new responsibilities around tax planning, documentation, and financial disclosures.

All businesses, regardless of tax liability, must now:

Register for corporate tax with the Federal Tax Authority (FTA).
Maintain accounting records that meet statutory reporting standards.
Submit their annual corporate tax filing in UAE within the specified time frame.

Corporate Tax for Free Zone Entities

Entities based in free zones may qualify for a 0% tax rate if they meet the conditions to be treated as a Qualifying Free Zone Person (QFZP). These conditions include:

Earning qualifying income (as defined in Ministerial Decision No. 139 of 2023)
Having adequate economic substance in the free zone
Avoiding excluded activities
Not electing to be taxed at the standard corporate tax rate

We provide specialised guidance for free zone companies to help them meet these requirements and continue benefiting from preferential tax treatment. We also advise on restructuring options for businesses that no longer meet the QFZP criteria.

Who Needs to Pay Corporate Tax in the UAE?

All companies that are legally established in the UAE, or effectively managed and controlled within its jurisdiction, are subject to corporate tax. This includes:

Companies registered in the mainland UAE
Free zone entities that do not qualify for exemption
Foreign entities operating through a permanent establishment in the UAE
Individuals conducting business under a trade or freelance license

For businesses with an annual net profit of AED 375,000 or more, corporate tax becomes payable. Those with profits below this threshold are still required to register and file a tax return, but are taxed at a 0% rate.

The law also applies to individuals operating as sole proprietors once their annual revenue exceeds AED 1 million, making compliance essential for freelancers and small business owners.

Corporate Tax Rate in UAE: How It’s Calculated

The corporate tax rate in UAE is tiered and applies only to net profit, after deducting allowable business expenses. Here’s how the rate is structured:

0% tax on the first AED 375,000 of net income
9% tax on income exceeding AED 375,000
15% minimum tax for large multinational companies with consolidated global revenue above EUR 750 million (under the OECD Pillar Two rules)

This approach ensures that smaller businesses and startups continue to enjoy fiscal advantages, while larger enterprises contribute in line with international standards.

Strategic Corporate Tax Advice

Understanding how the tax law affects your business is the first step. We assess your business structure, revenue streams, and operational footprint to determine your exact obligations and opportunities for optimisation.

If your company qualifies for any tax exemptions, we provide a roadmap to help you claim them efficiently and legally. Our team also explains which of your income streams may be exempt from corporate tax and ensures these are correctly reported to avoid overpayment.

Corporate Tax Registration

All UAE businesses must register for corporate tax via the FTA’s online portal. This requires submitting documents like trade licenses, Emirates ID, and passport copies, and financial statements.

We manage the entire process to ensure your application is complete, compliant, and on time. Once approved, you’ll receive a Tax Registration Number (TRN).

Timely registration is important; delays can lead to penalties or affect license renewals and banking, where tax compliance is now essential.

Annual Corporate Tax Filing in UAE

UAE businesses must file corporate tax annually, within nine months of their financial year-end. This includes calculating taxable income, applying the correct rate, and submitting returns via the FTA portal.

We help prepare accurate, compliant filings with proper documentation, minimising audit risks and ensuring all eligible deductions are claimed.

Our Corporate Tax Services in UAE

Our role is to make this transition as smooth and beneficial as possible. We offer comprehensive services covering every aspect of corporate tax compliance UAE, starting with strategic advisory and extending through filing and ongoing support.

Tax Group Formation and Consolidation

Companies under shared ownership may choose to register as a Tax Group, allowing them to consolidate financial reporting and tax calculations. This is ideal for businesses with multiple legal entities operating under one parent organisation.

To qualify, the parent company must hold at least 95% of the voting rights, share capital, and profit entitlements of the subsidiaries. All entities must follow the same fiscal year and accounting policies.

We guide you through the Tax Group application process, prepare the required consolidated reports, and ensure compliance with transfer pricing and intercompany transaction rules.

Deductible Expenses Under UAE Corporate Tax Law

Businesses can reduce their taxable income by claiming deductions for legitimate operational expenses. Allowable deductions include:

Salaries and reasonable director fees (if market-aligned)

Interest on qualifying debt (subject to EBITDA limits)

Royalty payments to foreign affiliates (at arm’s length)

Depreciation and amortisation of long-term assets

Legal, licensing, and business setup costs

Donations to approved charities

Irrecoverable VAT

Doubtful debts, as per IFRS standards

50% of employee entertainment costs

Losses carried forward from previous tax periods

Every deduction must be documented and substantiated. We help identify eligible deductions, calculate the amounts, and ensure they are correctly presented in your annual tax return.

Ready to Stay
Compliant and Confident?

With deep knowledge of corporate tax services UAE, extensive experience across industries, and a clear focus on efficiency and transparency, we’ll help your business move forward without any glitches.
Fill the form to schedule a consultation with our corporate tax experts.

The applicable corporate tax rate in the UAE depends on the company’s annual taxable income:

A 0% rate applies to income up to AED 375,000.
A 9% rate is applied to income exceeding AED 375,000.
Large multinational companies falling under the OECD’s Pillar Two framework are subject to a separate tax rate, based on global revenue thresholds and specific compliance criteria.

Corporate tax registration typically takes 20 business days from the date the Federal Tax Authority (FTA) receives a complete application.

If the FTA requires further information, additional time may be needed. In such cases, the applicant must submit the requested details before the application can proceed.

Corporate tax is levied on the net profit earned by a business, while Value-Added Tax (VAT) is charged on the sale of goods and services at each stage of the supply chain. Under the corporate tax system, businesses are required to calculate and report their taxable income and pay tax accordingly.

In contrast, VAT is collected from customers and remitted to the government, based on the value added during transactions.

Dubai Free Zones

Sharjah Free Zones

Ajman Free Zones

RAK Free Zones

Fujairah Free Zones

Expert Guidance in Corporate Tax Registration,Filing & Compliance

What Does the UAE Corporate Tax Law Mean for Your Business?

Corporate Tax for Free Zone Entities

Who Needs to Pay Corporate Tax in the UAE?