Introduction
The UAE introduced a federal Corporate Tax regime effective June 2023, marking a significant shift in the country’s tax landscape. For businesses operating in the UAE, understanding the implications of this new law is critical to maintaining compliance and avoiding penalties.
Who Is Subject to Corporate Tax?
Corporate Tax applies to all juridical persons incorporated in the UAE, foreign entities with a permanent establishment in the UAE, and individuals conducting business activities under a business license. Free zone entities may qualify for a 0% preferential rate if they meet specific conditions set by the Federal Tax Authority (FTA).
Key Tax Rates
The UAE Corporate Tax rates are:
- 0% on taxable income up to AED 375,000
- 9% on taxable income exceeding AED 375,000
- Separate rules apply for large multinationals under the OECD Pillar Two framework
Registration and Filing Requirements
All businesses subject to Corporate Tax must register with the FTA and obtain a Tax Registration Number (TRN). Annual tax returns must be filed within nine months of the end of the tax period. Accurate bookkeeping and audited financial statements are essential to support your tax return.
Free Zone Businesses
Qualifying Free Zone Persons (QFZPs) may benefit from a 0% Corporate Tax rate on qualifying income. However, they must still register, file returns, and ensure they meet the substance requirements outlined by the FTA. Non-qualifying income is taxed at the standard 9% rate.
How NRS Fynser Can Help
Our team of FTA-registered tax agents provides end-to-end Corporate Tax compliance services — from registration and structuring advice to return preparation and audit defence. Contact us today to ensure your business is fully compliant and positioned for sustainable growth.
About NRS Fynser - Chartered Accountants & Business Advisors
Established in 2017, NRS Chartered Accountants (operating as NRS Fynser) is a distinguished, multidisciplinary audit, tax advisory, and management consulting firm headquartered in Dubai, UAE. We provide forward-thinking enterprises, multinational subsidiaries, and fast-growing organizations with strategic financial intelligence, uncompromising regulatory compliance, and cutting-edge operational technology.
Our multidisciplinary practice spans registered statutory auditing, corporate tax registration, corporate tax return filing, VAT compliance, transfer pricing documentation, AML and CFT compliance, accounting, CFO advisory, company incorporation, and enterprise resource planning (ERP) implementations powered by SAP, Zoho, and Microsoft Power BI.
As Federal Tax Authority (FTA) registered tax agents (TAAN Accredited), our partners and consultants bring decades of tier-one professional expertise, ensuring every corporate client maintains full adherence to UAE federal decree laws, Cabinet decisions, and International Financial Reporting Standards (IFRS).