Expert Tax Advice and Compliance by a Certified Corporate Tax Expert
Corporate tax in the UAE was introduced under Federal Decree-Law No. 47 of 2022, which came into effect on 1 June 2023. The law applies to businesses and individuals conducting commercial activities. The introduction of a corporate tax regime puts the UAE in line with international benchmarks on taxation, and introduces an element of transparency for UAE businesses with respect to international obligations such as OECD BEPS.
Corporate tax rates in UAE are as follows:
| Tier | Taxable Income | Corporate Tax Rate |
|---|---|---|
| 1. | Income of up to AED 375,000 | 0% |
| 2. | Income that exceeds AED 375,000 | 9% |
| 3. | A higher rate applies to multinational corporations that fall under Pillar Two | From 15% |
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The UAE Federal Tax Authority mandates that all taxable individuals must register for UAE Corporate Tax and obtain a Corporate Tax Registration Number. However, non-resident individuals earning state-sourced income without a permanent establishment or nexus in the UAE are exempt from registration. This exemption is allowed because they will not have a corporate tax liability in the UAE, and their home country holds the primary taxing authority. If an individual seeks exemption from corporate tax, such as an investment fund seeking to be treated as a qualifying investment fund, they must first register with the Federal Tax Authority before applying for exemption from corporate tax.
| Clause | Description |
|---|---|
| 1 | Taxable Persons |
| - UAE juridical persons, including Free Zone Persons (e.g., private or public joint stock companies, limited liability companies) incorporated or recognized under UAE laws. | |
| - Non-UAE juridical persons (incorporated outside the UAE) managed and controlled in the UAE. | |
| - Natural persons (individuals) conducting Business or Business Activity in the UAE (subject to Cabinet Decision). | |
| - Non-Resident Persons with Permanent Establishment or UAE sourced income under Corporate Tax. | |
| 2 | Categories of Taxable Persons |
| - Resident Person: Determined by specific factors outlined in the Corporate Tax Law, distinct from ordinary tax and legal residency. | |
| - Non-Resident Person: Taxable Persons not meeting Resident criteria. | |
| 3 | Resident Persons Criteria |
| - (a) UAE-incorporated juridical persons automatically considered Resident Persons. | |
| - (b) Juridical persons from foreign jurisdictions managed and controlled in the UAE are Resident Persons. | |
| - (c) Natural persons conducting Business in the UAE are Resident Persons for income derived from that activity. | |
| - (d) Cabinet Decision may include other Persons within Resident category. | |
| 4 | Non-Resident Persons Criteria |
| - (a) Non-Resident Persons with activities through Permanent Establishment in the UAE subject to Corporate Tax. | |
| - (b) Non-Resident Persons receiving State Sourced Income also considered Non-Resident for Corporate Tax. | |
| - (c) Cabinet Decision may specify other circumstances for Non-Resident classification. | |
| 5 | UAE Branches of Resident Persons |
| - UAE branches treated as extensions of head office; income and expenditure of all domestic branches included in Tax Return. |
Multinational corporations operating in the UAE may be subject to the OECD Pillar Two global minimum tax framework, which establishes a minimum effective tax rate of 15% for large multinational enterprises with consolidated revenues exceeding EUR 750 million. The UAE corporate tax regime aligns with international taxation standards and ensures that multinational groups operating within the UAE comply with global tax transparency requirements.
Our corporate tax consultants assist multinational companies with:
As a leading corporate tax consultant in Dubai, we help businesses understand that corporate tax and Value Added Tax (VAT) are two different frameworks in the UAE. Corporate tax is applied directly to your business's net annual profits. In contrast, VAT is an indirect consumption tax levied on goods and services.
Your primary obligation under the new regime is filing accurate corporate tax returns on business earnings. Conversely, VAT compliance involves collecting VAT from consumers on behalf of the Federal Tax Authority (FTA).
Consulting a corporate tax expert ensures you balance both frameworks seamlessly without risking non-compliance penalties.
CorporateTaxUAE provides professional corporate tax consulting services in Dubai and across the UAE. Our experienced corporate tax consultants assist businesses in meeting their tax obligations under UAE Federal Decree Law No. 47 of 2022, ensuring full compliance with regulations issued by the Federal Tax Authority (FTA)
With over 40 years of combined experience and more than 30,000 clients served, our team has supported startups, SMEs, and multinational companies across a wide range of industries.
We focus on helping businesses understand their corporate tax obligations, implement efficient tax strategies, and maintain compliance with the UAE’s evolving tax framework.Speak to our registered corporate tax consultants in Dubai for a free consultation and professional guidance on your corporate tax matters.
Our experienced corporate tax advisors in Dubai assist businesses with a wide range of corporate tax matters under the UAE Corporate Tax Law. We provide practical guidance to help companies remain compliant with the regulations issued by the Federal Tax Authority (FTA).
Our key corporate tax services include:
Our corporate tax consultants help businesses understand their obligations and implement efficient tax strategies while remaining fully compliant with UAE tax laws.
Accurate financial reporting is the foundation of flawless compliance. A qualified corporate tax accountant ensures that your business financial statements, balance sheets, and net profit calculations align perfectly with the Federal Tax Authority (FTA) regulations. From determining taxable income to identifying legal deductions, our corporate tax accounting services help minimize liabilities while maintaining immaculate books.
Our team of experienced corporate tax accountants assists businesses with:
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