Corporate Tax

Corporate tax (CT) or Corporate Income Tax (CIT) is a form of direct tax levied on the net income or profit of corporations and other entities from their business.

Introduction

In the rapidly evolving business landscape of the United Arab Emirates (UAE), understanding and adhering to corporate tax compliance regulations is very important for all types of businesses.

Corporate tax in the UAE ensures that businesses meet their tax obligations as mandated by the UAE tax laws. This includes accurate and timely filing of tax returns, maintaining proper records, and adherence to tax-related reporting requirements. Complying with tax regulations is not only a legal necessity but also vital for fostering trust with stakeholders, investors, and customers.

On 31 January 2022, Ministry of Finance (MoF) making the breakthrough announcement that a new federal corporate tax (CT) system will be implemented in the UAE, effective from 1 June 2023. UAE has introduced the lowest corporate income tax rate within the GCC region at a standard rate of 9%.

Scope of Corporate Tax

The Corporate Tax in UAE is applicable to:

  • All businesses and individuals carrying out business activities under a commercial license in the UAE

  • Free zone businesses that comply with all regulatory requirements and do not conduct business set up in the UAE mainland.

  • Foreign entities and individuals only if they carry on a trade or business in the UAE on an ongoing or regular basis.

  • Businesses activities engaged in real estate management, construction, development, agency and brokerage.

  • Banking operations

Exemptions from Corporate Tax

The following are generally exempt from Corporate Tax:

  • Government and government-controlled entities.

  • Extractive and non-extractive natural resource businesses.

  • Qualifying public benefit entities.

  • Public or private pension and social security funds.

  • Qualifying Investment funds.

Corporate Tax Rates

All annual taxable profits that up to AED 375,000 shall be subject to 0% rate.

All annual taxable profits above AED 375,000 shall be subject to 9% rate.

Large multinationals that fall under the scope of Pillar 2 of the BEPS 2.0 framework shall be subject to different rates as per OECD Base Erosion and Profit-Sharing rules.

Our Corporate Tax Services

Corporate Tax Consultation

Corporate Tax Consultation

AGL Financial Consultancies experts will give advise on all corporate tax considerations which might impact your business in UAE. Also include what tax exemptions could be available to your business and how to benefit from these.

Corporate Tax Registration

Corporate Tax Registration

Our expert team will assist in Corporate tax registration for  your business with the Federal Tax Authority (FTA) – UAE and manage the deadlines for all of your corporate tax obligations.

Corporate Tax Returns

Corporate Tax Returns

We will assess your corporate tax position in UAE, ensure the best tax outcome for your business, and file all necessary submissions with the Federal Tax Authority (FTA) throughout the year.

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