UAE Corporate Tax consultant 2024

Who should register for Corporate Business Tax in the UAE?

Requirement for Corporate Business Tax Registration

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.

Who is subject to UAE 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.

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Corporate tax for Multinational Companies

EU member states have agreed that companies with a worldwide revenue exceeding 750 million euros (equivalent to $735 million or 2.70 billion UAE dirhams) will be required to pay a minimum tax of 15%, regardless of the potential implementation of the OECD Pillar Two system in the future. This decision is a demonstration of the EU's commitment to enforcing internationally accepted guidelines for equitable and efficient taxation of multinational corporations on a regional level.

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Is Corporate Tax same as the VAT?

VAT and corporate tax are two separate forms of taxes imposed in the UAE. Companies are subject to and are responsible for paying corporate tax, which is a tax based on profits. The VAT, on the other hand, is a consumption-based tax that is paid by people who use the products and services they purchase.

While value-added tax is computed by adding the value at each stage of manufacturing, corporate tax in Dubai is based on earnings. Unlike with VAT, where businesses must charge VAT and return it to the FTA, firms are expected to file taxes and subsequently pay corporate taxes on the earnings. In conclusion, whereas value-added taxes are based on consumption and are imposed on consumers for the products and services they use, corporation taxes are assessed based on profits.

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Manage your Corporate tax with CorporateTaxUae

CorporateTaxUAE is your trusted partner for corporate tax solutions in Dubai, UAE. With an impressive legacy of over 30 years and a track record of serving 30,000+ clients, we stand out as leading corporate tax consultants in the region.

Our dedicated team of experts possesses in-depth knowledge of the UAE's taxation system, ensuring your corporate tax obligations are managed effortlessly. We offer a comprehensive array of services, including tax registration, tax return filing, tax planning, tax compliance, tax audit support, and more, all tailored to meet your specific requirements.

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Key Areas of Practice for Our Corporate Tax Advisors in Dubai

Our expert tax advisors in Dubai give clients the pleasure that only really professional teams can bring by providing complete services performed with high quality and a focus on clients. The following are some of the most popular areas of tax law in which our corporate tax advisors routinely assist clients:

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