Faq

Business Tax in the UAE mainly refers to the UAE Corporate Tax (CT) which is a federal tax imposed on the net income or profit of companies and other businesses.  It is introduced by the Federal Decree-Law No. 47 of 2022 and applies to financial years commencing on or after 1 June 2023.

UAE Corporate Tax rates are:

• 0% on taxable income up to AED 375,000
• 9% on taxable income over AED 375,000
• 0% on qualifying income of Qualifying Free Zone Persons (QFZPs) who meet certain conditions

All mainland and free zone businesses are required to register for Corporate Tax and to comply with the Federal Tax Authority (FTA), unless they qualify for exemptions (for e.g. certain Government Entities, Extractive Businesses, Small Business Relief for entities with Revenue ≤ 3 million AED).

UAE Corporate Tax, free zone benefits, transfer pricing, deductible expenses, FTA guidance and EmaraTax requirements can be confusing.

A UAE Tax Consultant or Corporate Tax Advisor can help you:

• Correctly register for Corporate Tax and obtain your Tax Registration Number (TRN)
• Accurately compute taxable income and claim all available reliefs
• Avoid penalties for late registration, filing, or payment
• Optimize tax positions through legitimate tax planning (Free Zone structuring, Small Business Relief, deductible expenses)
• Keep abreast of FTA guidance and EmaraTax requirements.

Professional advice minimizes risk, ensures full compliance, and maximizes legitimate tax efficiency.

For Corporate Tax return filing in the UAE, prepare:

• Trade license / commercial registration and company formation documents
• Corporate Tax Registration Number (TRN)
• Audited/Management Financials (Profit and Loss, Balance Sheet and Cash Flow)
• Trial balance and General ledger
• Bank statements and reconciliations
• Records of revenue and expenses, invoices, and documents supporting any claims for deductions
• Any reliefs claimed (e.g. Small Business Relief, free zone qualifying income) Details of any reliefs claimed
• Transfer pricing documentation (if applicable)

Records should usually be retained for a minimum of 7 years.

UAE corporate tax planning strategies are:

• Claiming 0% on the first AED 375,000 of taxable income
• Choosing Small Business Relief (revenue AED 3 million and below – until end-2026 under current rules)
• Opting to be a Qualifying Free Zone Person for 0% on qualifying income
• Claiming the maximum business deductions and expenses
• Applying group reliefs, business restructuring relief and proper transfer pricing
• Keeping solid records and getting professional tax advice

Always check for compliance with FTA rules, over-aggressive or non-compliant modes can get you penalised.

Tax return filing (Corporate Tax return) is the annual required process for you to declare your taxable income, compute any due Corporate Tax and submit the tax return to the Federal Tax Authority. The tax return must be submitted within nine months after the end of the tax period (financial year). Payment of any tax due is also required by the same deadline.

Yes. All UAE Corporate Tax returns are filed electronically through the official EmaraTax portal of the Federal Tax Authority (FTA). Registration, return submission, and payments are handled online via EmaraTax.