Understanding Corporate Tax in the UAE: A Guide for Businesses

The introduction of corporate tax in the UAE marks a significant shift in the business landscape. For years, the UAE was known for its tax-free environment, attracting entrepreneurs and multinational companies from across the globe. However, with the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, companies must now ensure compliance while continuing to thrive in this dynamic market.

What is Corporate Tax in the UAE?

Corporate tax is a direct tax imposed on the net income or profit of corporations and other business entities. In the UAE, a 9% corporate tax applies to taxable profits exceeding AED 375,000, with profits below this threshold being exempt to support small businesses and startups.

Who Needs to Register and File Corporate Tax?

Corporate tax applies to:

• All businesses and commercial activities conducted in the UAE

• Free zone entities (subject to conditions for 0% tax rates)

• Foreign companies with a permanent establishment in the UAE

Exemptions apply to certain sectors such as natural resource extraction, charitable organisations, and government entities.

Key Deadlines and Compliance Requirements

Businesses must register for corporate tax through the Federal Tax Authority (FTA) and file annual corporate tax returns. Missing deadlines can result in significant penalties, impacting both cash flow and business reputation.

Why Corporate Tax Planning Matters

Proper tax planning ensures businesses:

• Optimise allowable deductions and credits

• Avoid penalties through timely filing

• Maintain accurate financial records

• Forecast tax liabilities for better budgeting

• 
  

How Arzonell Accounting & Tax Can Help

At Arzonell Accounting & Tax, we assist businesses in Dubai and across the UAE with corporate tax registration, compliance, and strategic planning. Our expert team ensures accuracy, transparency, and adherence to FTA regulations, allowing you to focus on growing your business without worrying about tax complexities.

📌 Get in touch today to make corporate tax compliance simple, stress-free, and efficient.