Corporate Tax Services in UAE | Register, File & Stay Compliant with Confidence

UAE corporate tax became effective for financial years beginning on or after 1 June 2023. For a business with a financial year running January to December, the first tax period subject to corporate tax would be January to December 2024, with the return due by September 2025. The exact start date depends on your financial year, not a fixed calendar date.

The standard rates are 0% on taxable income up to AED 375,000 and 9% on taxable income above that threshold. There is also a 15% rate that may apply to large multinational corporations with global revenues exceeding EUR 750 million, in line with the global minimum tax framework. Free zone companies with Qualifying Income may benefit from a 0% rate, provided they meet all the required conditions.

Free zone companies are within the scope of UAE corporate tax, but they can benefit from a 0% rate on their Qualifying Income if they are classified as a Qualifying Free Zone Person (QFZP). To qualify, the business must maintain adequate substance in the UAE, earn income from qualifying activities and meet financial reporting requirements. If your free zone company does not meet all the conditions, it will be taxed at the standard 9% rate. Our team can assess your free zone company's status and help you maintain or regain qualifying status.

Taxable income is generally your accounting net profit, adjusted for specific items under the UAE corporate tax law. Certain expenses are not deductible (such as entertainment expenses above a threshold, interest expenses above a certain limit and payments to related parties not on arm's length terms). Dividends received from UAE subsidiaries are generally exempt. Our team prepares your taxable income calculation correctly and ensures all allowable deductions are claimed.

Corporate tax returns must be filed within 9 months of the end of your tax period. For example, if your financial year ends 31 December 2024, your return is due by 30 September 2025. Payment of any tax due is also due by the same date. Late filing results in fixed penalties from the FTA.

Small Business Relief allows businesses with annual revenue of AED 3 million or less to elect to be treated as having no taxable income, meaning zero corporate tax payable. This election is made in the corporate tax return. It is designed to reduce the compliance burden on small businesses. However, even if you qualify, you still need to register for corporate tax and file a return — the relief does not remove the registration or filing obligation.

Transfer pricing rules apply when your business has transactions with related parties — for example, payments to a parent company, loans between group companies, or purchases from a sister entity. The UAE corporate tax law requires all related-party transactions to be priced on an arm's length basis, following the OECD Transfer Pricing Guidelines. If the FTA determines that your related-party pricing is not at arm's length, it can adjust your taxable income upwards, resulting in additional tax and potential penalties. If your business has any transactions with related companies, our transfer pricing team can review and document them properly.

Not all expenses are deductible. The corporate tax law specifies categories of expenses that are not deductible or are only partially deductible. These include: expenses not incurred for business purposes, entertainment expenses above 50% of the amount, interest expenses above the permitted deduction ratio (30% of EBITDA in most cases) and payments to related parties that are not at arm's length. Our team reviews your expense claims as part of the return preparation process to ensure you are claiming correctly.

Not every business is required to submit audited financial statements with its corporate tax return. However, the requirement depends on revenue thresholds and specific conditions set by the FTA. Businesses earning above AED 50 million in a tax period are generally required to prepare audited financial statements. Even if an audit is not mandatory for corporate tax, having audited accounts provides a reliable basis for your tax return and reduces the risk of FTA challenges. Our Auditing Services team can handle your audit needs alongside the corporate tax work.

If you identify an error in a previously filed return, you can submit a voluntary amendment through the EmaraTax portal. The FTA generally treats voluntary corrections more favorably than errors discovered during an audit. If the FTA identifies an error before you correct it, you may face penalties and interest. If you are worried that a past return may contain errors, our corporate tax health check service reviews your previous filings and recommends corrections where needed.

Yes. Even if your business made a loss and owes zero tax, you are still required to file a corporate tax return for every tax period after registration. The upside is that tax losses under UAE corporate tax law can be carried forward and offset against future taxable income, reducing your tax bill in profitable years. Proper filing of loss-making years is important to preserve this benefit.

Dividends received from UAE-incorporated subsidiaries are generally exempt from corporate tax under the Participation Exemption, provided certain conditions are met. Capital gains from the sale of qualifying shares are also generally exempt under the same rules. However, capital gains from real estate and other assets may be taxable depending on the circumstances. International dividends and capital gains have their own rules. Our advisory team assesses the tax treatment of your specific income streams.

A Permanent Establishment (PE) exists when a foreign business has a fixed place of business in the UAE — such as an office, branch, or a dependent agent who regularly concludes contracts on its behalf. If a foreign company has a PE in the UAE, the income attributable to that PE is subject to UAE corporate tax at 9%. PE risk is a common concern for multinational businesses with operations in the UAE and getting it wrong can lead to unexpected tax liabilities.

The cost depends on the scope of work — registration only, return filing only, or a full-year compliance and advisory package. We always provide a clear, fixed quote before starting any work. Contact us with details about your business and we will give you a straightforward estimate.