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Expert Corporate Tax Services in UAE – Simplifying Compliance for Your Business
Your Trusted Partner in Navigating UAE Corporate Tax Compliance
In the ever-evolving landscape of corporate tax in UAE, businesses face unprecedented challenges. Whether you’re a multinational corporation, a dynamic SME, or an ambitious startup, the new tax regulations can be complex. That’s where our expert corporate tax consultants step in – transforming tax compliance from a daunting task to a strategic opportunity.
Understanding Corporate Tax in UAE
The introduction of corporate taxation marks a pivotal moment for businesses in the UAE. With a corporate tax rate of 9% on taxable income above AED 375,000, companies must adapt quickly to remain compliant and financially optimized. But numbers tell only part of the story.
| Tier | Taxable Income | Corporate Tax Rate |
|---|---|---|
|
1. |
Up to AED 375,000 |
0% |
|
2. |
Above AED 375,000 |
9% |
|
3. |
Large multinationals Companies with Total annual revenue over EUR 750 million (around AED 3.15 billion) under Pillar Two of the Organisation for Economic Cooperation and Development (OECD) base erosio n and profit shifting (BEPS) project. |
15% |
UAE Corporate Tax Rate – What You Need to Know
The newly implemented tax structure is carefully designed to maintain the UAE’s reputation as a business-friendly environment while establishing a fair and transparent taxation system. The tax rates are strategically tiered to accommodate businesses of all sizes:
- 0% Corporate Tax – A relief for smaller businesses, applying to taxable income up to AED 375,000
- 9% Corporate Tax – Targeted at medium and large businesses with taxable income exceeding AED 375,000
- 15% Corporate Tax for Multinationals – Applicable to large corporations with annual revenues over EUR 750 million (approx. AED 3.15 billion), aligning with OECD Pillar 2 guidelines to prevent base erosion and profit shifting (BEPS)
Effective from financial years starting on or after 1 June 2023, these regulations introduce nuanced considerations for free zones companies, SMEs, and multinational entities. The landscape is complex but not insurmountable.
Our Comprehensive UAE Corporate Tax Services
We’ve developed a holistic approach to corporate tax in UAE that covers every aspect of your business’s tax needs:
- Corporate Tax Registration – Streamlined process for obtaining your Tax Registration Number (TRN)
- Corporate Tax Calculation – Precision in determining your tax obligations
- Corporate Tax Filing & Compliance – Meticulous management of corporate tax filing deadlines
- Tax Advisory & Planning – Strategic optimization to minimize tax liabilities
- Free Zone & SME Tax Advisory – Specialized solutions for unique business structures
- Transfer Pricing & International Tax Compliance – Expert navigation of OECD Pillar 2 requirements
Register & File Your Corporate Tax with Confidence
Tax complexity should never impede your business success. Our expert team ensures a hassle-free journey regarding corporate tax registration, understanding their rates, and meeting critical tax filing deadlines.
📞 Contact Us Today – Let’s turn tax compliance into a competitive advantage.
FAQs
All businesses or individuals conducting commercial activities are subject to the CT Legislation. CT will not apply to an individual’s salary and other employment income. However, individuals who are deriving income as a business activity would be covered under CT.
A narrow scope of entities are exempt from Corporate Tax such as Government entities or extractive businesses (upstream oil and gas sector).
CT is a distinct and separate obligation to VAT. No minimum turnover threshold is applied and you must register and fulfill your obligations under the CT Law. VAT registration is not required to meet your CT obligations.
The Corporate Tax Law still applies to Free Zones and are not automatically exempt. Special rules exist for Free Zones and you may benefit from a 0% rate on qualifying income subject to meeting requirements. Only satisfying these requirements can a Free Zone company benefit from the exemptions.
CT is calculated as
Final taxable income: (Net profit on worldwide income as per financial statement Less (-) deductible expenses, interest expense, depreciation, etc. + any adjustments to income
CT liability = A + B
- Less foreign tax credit (if applicable)
Final CT payable
Passive forms of income are exempt from CT, they include Investment in real estate, salary/ employment income, dividends, capital gains, other income earned from owning shares or other securities, interest from bank deposit/ saving schemes
The CT Law provides for some exemptions and benefits subject to meeting requirements. It is advisable to seek professional advice to ensure you maximise these opportunities.
No. Only expenses incurred wholly and exclusively for business purposes, (and which are not to be capitalized) are deductible. Certain types of expenses are subject to limits and cannot be fully expensed.
CT comes into force on June 1st 2023. Therefore if your financial year is from 1st January to 31st December, the first year for CT is from 1st January 2024. You are obliged to file your CT return and settle your liability 9 months following end of your financial year.
Yes. The MoF has announced a small business tax relief scheme available to small businesses. Qualifying businesses as having no taxable income and be asked to undertake simplified compliance obligations.
The threshold is based on the revenue and not the profits/taxable income and is expected to be confirmed in a subsequent Cabinet Decision
If your business conducts transactions between related parties and connected persons, you are expected to implement a formal Transfer Pricing policy and rules. This will include a Disclosure form, Master and local files detailing your formal policy and pricing determination evidenced by empirical benchmarks.
General Anti-Abuse rule, or "GAAR" applies to situations where one of the main purposes of a Transaction is to obtain a Corporate Tax Advantage not consistent with the intention or purpose of the UAE CT Law.
The FTA will address and counteract or adjust the transaction. The GAAR only applies to transactions or arrangements entered into on or after the date the UAE CT Law is published in the UAE Official Gazette of 10 October 2022.
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