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UAE Corporate Tax: Everything You Need to Know

A comprehensive breakdown of the UAE's corporate tax regime.

Introduction to UAE Corporate Tax

The UAE corporate tax regime represents a balanced approach to fiscal policy while maintaining competitive tax rates.

Corporate Tax Rates

Standard Rate: 9%

Applied to taxable income exceeding AED 375,000

0% Rate

  • Taxable income up to AED 375,000
  • Qualifying free zone persons
  • Qualifying income from intellectual property

Who is Subject to Corporate Tax?

Taxable Persons:

  • UAE resident juridical persons
  • Natural persons conducting business above AED 1 million
  • Non-residents with permanent establishment in UAE

Exempt Persons:

  • Government entities
  • Extractive businesses
  • Qualifying public benefit entities

Free Zone Businesses

Free zone companies can benefit from 0% corporate tax on "Qualifying Income" if they:

  • Maintain adequate substance in the UAE
  • Derive qualifying income
  • Comply with transfer pricing requirements

Key Compliance Requirements

Registration

All taxable persons must register with the Federal Tax Authority.

Tax Returns

  • File annual corporate tax returns
  • Due within 9 months from tax period end

Record Keeping

Maintain records for at least 7 years.

Practical Steps for Businesses

  1. Assess your tax position
  2. Register with FTA
  3. Review contracts
  4. Update accounting systems
  5. Consider transfer pricing
  6. Engage tax advisors

Need assistance with UAE corporate tax compliance? Contact Two Pillars Advisory for expert guidance.

Review and authoritative references

Last reviewed: . Presentation and reference review; full numerical verification pending.

Official references explain the applicable framework; they do not validate every estimate below. Authority fees, bank tariffs and eligibility can change. Confirm the current requirements before committing funds.