Corporate Tax Registration
Dubai, UAE
Avoid penalties and fines by seeking the help of our professional tax consultants, from Corporate Tax Registration and filing to accurate income calculation and timely payments.
What is Corporate Tax in the UAE?
About Corporate Tax
Corporate tax in the UAE is a levy imposed on the profits earned by businesses. The UAE has implemented a 9% corporate tax rate on profits exceeding a certain threshold, with a 0% rate for earnings up to AED 375,000. This tax applies to various entities, including companies, individuals conducting business activities, and non-resident entities with a permanent establishment in the UAE.
Corporate Tax System Overview
In the UAE, a federal corporate tax was introduced in June 202, subjecting businesses to a standard rate of 9% on profits exceeding AED 375,000. Certain sectors and free zones may have different regulations or exemptions.
This policy supports the country's aim to stay the top business destination by ensuring a fair and transparent tax environment while maintaining globally competitive rates. It mandates all businesses, including those qualifying for a 0% tax rate, to complete corporate tax registration.
The UAE's corporate tax system is designed to be straightforward yet comprehensive. It includes a fixed tax rate and clear guidelines on taxable income, deductions, and compliance requirements.
New Corporate Tax Law
The new corporate tax law in the UAE applies to all businesses and commercial activities, with a few exceptions. Companies are categorized as taxable, exempt, or qualifying free zone persons (QFZPs), and their status is assessed accordingly.
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Register Your Corporate Tax
Corporate Tax Services
At EZONE, we provide comprehensive corporate tax services to help businesses navigate the UAE's tax landscape efficiently.
Our services include:
- Guidance on determining your corporate tax obligations based on your business activities and income levels
- Assistance with completing the mandatory corporate tax registration process for all businesses in the UAE, including those in free zones and those eligible for a 0% tax rate
- Ensuring your registration is compliant with the latest regulations set by the Federal Tax Authority (FTA)
- Preparation of accurate corporate tax returns based on your financial statements and in line with the UAE’s corporate tax laws
- Calculation of your tax liability and advising on tax planning strategies to optimize your tax position
- Timely filing of your corporate tax returns with the FTA to avoid penalties and interest charges
- Representing you in case of tax audits and responding to any queries from the authorities
- Providing updates on any changes to the UAE’s corporate tax regulations and their implications for your business
- Advising on the corporate tax implications of business decisions, such as mergers, acquisitions, or restructuring
- Assisting with the payment of your corporate tax liability and obtaining the necessary tax clearance certificates
- Offering guidance on the corporate tax exemptions and incentives available to your business based on your industry and location
Corporate Tax: A Step Toward Building Trust and Credibility!
Corporate Tax Criteria
Businesses operating in the UAE are required to register for VAT if their taxable supplies and imports exceed the mandatory threshold. With a standard rate of 5%, VAT applies at each stage of the supply chain, from production to the final sale.
Understanding VAT compliance, reporting, and filing requirements is essential for businesses to avoid penalties and ensure smooth operations in the UAE.
Resident Taxable Persons:
- Juridical Persons, including free zone persons such as incorporated, established, or recognized in the UAE
- Natural Persons conducting business activity in the UAE.
- Foreign entities (non-juridical) effectively managed and controlled in the UAE
Non-Resident Taxable Persons:
- Entities with a permanent establishment in the UAE
- Entities with state-sourced income in the UAE
- Entities with a nexus in the UAE
Certain entities are automatically exempt from corporate tax:
- Government entities
- Public pension and social security funds
- Qualifying public benefit entities
- Private pension funds
- Qualifying investment funds
- Wholly owned and controlled UAE subsidiaries of exempt persons
QFZPs can benefit from a 0% corporate tax rate on their qualifying income, provided they meet specific criteria.
- Must maintain adequate substance in the UAE
- Must derive qualifying income
- Must comply with transfer pricing rules
- Must prepare audited financial statements per IFRS
- Transactions with other free zone persons
- Certain qualifying activities with non-free zone persons, including:
- Manufacturing
- Holding shares
- Owning ships
- Providing reinsurance services
- Offering headquarters and treasury services
Stay Compliant, Grow Confidently
Understanding Corporate Tax Rates in the UAE
Corporate tax is a key factor influencing the operations, profitability, and strategic decisions of businesses across various industries in the UAE. Understanding how the corporate tax rate impacts annual profits is crucial for effective financial planning and decision-making.
- 0% Tax rate to businesses with net profit up to AED 375,000
- 9% Tax rate to businesses with net profit over AED 375,000
- 15% tax rate to large multinational companies with a combined global net profit of over 3.15 billion, according to Pillar TWO of the OECD Base Erosion and Profit Shifting Project.
Required Documents for Tax Registration
- Passport Copy of Owners/Partners
- Trade License Copy
- Emirates ID Copy of Owners/Partners
- Memorandum of Association (MoA) or Power of Attorney
- Company Contact Details (Address)
- Contact Details of Point Person (Phone number or Email Address)
- Corporate Tax Period
Future-Proof Your Business
How to Register for Corporate Tax?
Registering for Corporate Tax in the UAE involves several steps. With our team of experienced tax professionals, we help streamline the process and ensure compliance with all regulations.
Determine Eligibility
Confirm if your business falls under the Corporate Tax regulations. Generally, this applies to companies with taxable income exceeding AED 375,000.
Business License
Ensure your Business has a valid Trade License issued by the relevant Free Zone or Economic Department.
Prepare Required Documents
- Trade license
- Emirates ID of the business owner
- Company's Memorandum of Association (MOA)
- Proof of business activities and financial statements
Register with the Federal Tax Authority (FTA)
You'll need to register with the FTA, which will issue a Tax Registration Number (TRN) once your registration is successful.
Submit the Application
Upload the required documents and submit your registration application.
Receive Confirmation
After processing, the FTA will send you a confirmation email with your Corporate Tax registration details.
Comply with Filing Requirements
Once registered, you must file Corporate Tax returns annually and keep accurate financial records.
Contact us today to learn how our Corporate Tax Services can benefit your company.