Corporate Tax Services in Abu Dhabi

0% on taxable income up to AED 375,000 and 9% above that threshold. Corporate Tax is a federal regime, so the rates are identical in Abu Dhabi, Dubai and the other Emirates. Qualifying Free Zone Persons pay 0% on qualifying income, and in-scope entities of large multinational groups may face a 15% effective rate.

Yes. Registration is mandatory for all taxable persons — mainland LLCs, ADGM and KEZAD companies, branches, holding companies, and dormant entities — regardless of profit or expected tax. Exempt persons may also have registration or notification obligations depending on the basis of exemption.

Businesses engaged in extraction of natural resources, and non-extractive natural resource businesses, may be exempt from federal Corporate Tax where they hold the relevant interest or right granted by the Emirate, are effectively subject to tax at Emirate level, and meet the notification conditions. The exemption attaches to the qualifying activity, not to the whole group — other income of the same entity is generally taxable and may require separate computation.

No. Supplying goods or services to an exempt operator does not confer exemption. Drilling contractors, engineering and EPC firms, equipment suppliers, logistics providers, and manpower companies serving the energy sector are ordinary taxable persons at 9% above the nil band, and their long-cycle contracts make revenue recognition timing the key issue.

Government entities are generally exempt, and government-controlled entities may be exempt where specified in a Cabinet Decision. Two qualifications matter: an exempt entity carrying on a business under a licence outside its mandated activity is taxable on that business, and subsidiaries must be assessed on their own facts rather than assumed to inherit the parent's status.

ADGM is a free zone for Corporate Tax purposes, so its companies are within the regime and must register and file. A Qualifying Free Zone Person pays 0% on qualifying income — which for ADGM often means fund and wealth management services, treasury and financing to related parties, and holding of shares — provided substance, transfer pricing, audit, and de minimis conditions are met. Regulated status alone does not establish the position.

Manufacturing and processing of goods is a listed qualifying activity, so KEZAD industrial occupiers often have a strong position — but only if substance, audited accounts, transfer pricing compliance, and the de minimis limit are all satisfied. Sales to UAE mainland customers are non-qualifying and count toward that limit, which catches out manufacturers with a growing domestic order book.

Within nine months of the end of your tax period. A December year-end means filing and payment by 30 September of the following year. There is no separate payment date, so the tax must be funded by the filing deadline.

Start from accounting income in IFRS financial statements, then apply the adjustments the law requires — exempt income such as qualifying dividends, non-deductible expenses, the interest deduction limitation, transfer pricing adjustments, and available reliefs. The quality of your accounts drives the accuracy of your tax.

A resident business with revenue at or below AED 3 million in the relevant period and all previous periods may elect to be treated as having no taxable income. It must be actively elected in the return and applies to tax periods ending on or before 31 December 2026 under current rules. A Qualifying Free Zone Person cannot claim it.

Expenses incurred wholly and exclusively for the business and not capital in nature. Net interest expense is generally capped at 30% of tax EBITDA above a de minimis amount, entertainment expenses are only partially deductible, and personal or owner-related costs are not deductible unless they reflect genuine market-value remuneration for services provided.

Yes. Tax losses can generally be carried forward and offset against up to 75% of taxable income in future periods, subject to continuity of ownership conditions. Losses arising in a Small Business Relief period cannot be carried forward, which matters when choosing between relief and standard rates.

The arm's length principle applies to all related-party and connected-person transactions, including owner remuneration, regardless of size. Formal documentation is required above defined revenue and group thresholds. Abu Dhabi's large family groups and government-linked structures frequently have extensive intercompany activity that has never been benchmarked.

Dividends from UAE resident companies are generally exempt. Dividends and capital gains from qualifying foreign shareholdings may be exempt under the participation exemption where conditions on ownership percentage, holding period, and subject-to-tax tests are met. Each holding should be assessed against those conditions.

No. Employment income, personal investment income, and income from personal real estate investment held in your own name are outside the scope. A natural person conducting a licensed business or professional activity is within scope where turnover from those activities exceeds AED 1 million in a calendar year.

Late registration carries a fixed AED 10,000 penalty. Late filing penalties accrue monthly and escalate, with further penalties for late payment, failing to keep records, and submitting an incorrect return. Voluntary disclosure of an error generally carries lower consequences than waiting for the FTA to find it. Verify current penalty schedules with the FTA.

Register and bring filings current immediately — exposure grows with time, not with disclosure. The FTA has previously operated waiver arrangements for certain late registrants who file within a shortened window, so the order in which you act can matter. Take advice quickly rather than waiting for a perfect set of records.

An audit is required to claim Qualifying Free Zone Person status, and separately by ADGM, KEZAD and other zone authorities for licence renewal. Larger businesses are also subject to audited financial statement requirements under the Corporate Tax framework. Smaller mainland companies may not require an audit but must still maintain proper accounting records.

Yes, and it is common. Corporate Tax is federal, so a group spanning both Emirates files under one regime, but each entity has its own registration and computation unless a tax group is formed. We handle multi-entity, multi-Emirate groups from our Abu Dhabi and Dubai offices with a single engagement team.

Book a free consultation or call +971 4557 0204. Bring your trade licence, financial year end, last set of accounts if available, and your EmaraTax login status. We will confirm your scope and registration position, outline what your filing requires, and quote a fixed fee before any work begins. Meetings are available at Al Nahyan Camp or our ADGM office on Al Maryah Island.