Corporate Tax Services in UAE

0% on taxable income up to AED 375,000 and 9% above that threshold. Qualifying Free Zone Persons pay 0% on qualifying income and 9% on the rest. In-scope entities of large multinational groups may face a 15% effective rate under the domestic minimum top-up tax. Corporate Tax is federal, so the rates are identical across all seven Emirates.

Every taxable person — mainland companies, free zone companies, offshore and international business companies, branches, holding companies, and dormant entities — regardless of profit or expected tax. Natural persons conducting business activities with turnover above AED 1 million in a calendar year must also register. Late registration carries a fixed AED 10,000 penalty.

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. This is why 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, and losses arising in a relief period cannot be carried forward.

No. Free zone companies are within the regime and must register and file. A Qualifying Free Zone Person pays 0% on qualifying income, but that status requires adequate substance, qualifying income, transfer pricing compliance, audited financial statements, and non-qualifying revenue within the de minimis limit — the lower of 5% of revenue or AED 5 million. Failing any condition means 9% on all income for that period and a number of following periods.

Broadly, income from transactions with other Free Zone Persons where they are the beneficial recipient, and income from listed qualifying activities regardless of counterparty. Qualifying activities include manufacturing and processing of goods, distribution from a designated zone, trading in qualifying commodities, holding of shares and securities, treasury and financing services to related parties, headquarter services to related parties, fund and wealth management, and certain logistics, shipping and aircraft activities. Income attributable to a permanent establishment and income from immovable property are generally excluded.

Expenses incurred wholly and exclusively for the business and not capital in nature. Key restrictions apply: 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.

The UAE does not operate a separate capital allowance regime — accounting depreciation computed under IFRS is generally deductible. That makes useful life estimates, residual values, and your capitalisation policy directly tax-relevant, particularly for capital-intensive manufacturers and asset-heavy businesses.

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 is a factor when choosing between relief and standard rates.

UAE resident entities meeting ownership and other conditions can form a tax group and file a single return, allowing losses in one entity to offset profits in another. It reduces filings but creates joint liability and excludes Qualifying Free Zone Persons. Entities owned directly by individuals rather than through a holding company generally cannot group. Model it rather than assuming it is beneficial.

The arm's length principle applies to all related-party and connected-person transactions, including owner remuneration, regardless of size — this catches family businesses and single-owner groups as well as multinationals. Formal documentation, local file and master file, is required above defined revenue and group thresholds. For free zone companies, transfer pricing compliance is also a condition of the 0% rate.

Dividends received 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 of Corporate Tax. 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.

A 0% withholding tax rate currently applies to certain UAE-sourced income paid to non-residents, so no withholding tax is payable and no filing is required in respect of it under current rules. The mechanism exists in the law, so monitor announcements from the Ministry of Finance in case the rate changes.

They are separate regimes with separate registrations, returns, and deadlines. VAT applies to supplies at 5%; Corporate Tax applies to profits. Both draw on the same underlying accounting records, so inconsistencies between VAT returns and the Corporate Tax computation are a common trigger for FTA questions.

An audit is required to claim Qualifying Free Zone Person status, and separately by most free 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.

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.

Financial statements, accounting records, invoices, contracts, bank statements, payroll records, related-party agreements, and all documents supporting the return. Retention is for the statutory period prescribed by the FTA, generally seven years from the end of the relevant tax period, and records must remain retrievable for audit.

It depends on entity count, transaction volume, whether bookkeeping is current, and whether free zone analysis or transfer pricing documentation is required. KGRN scopes the work in the initial consultation and quotes a fixed fee before starting. A single small mainland company with clean books is a very different engagement from a multi-entity free zone group.

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 registration status. We will confirm your scope and registration position, outline what your filing requires, and quote a fixed fee before any work begins.