Comprehending the complex UAE Corporate tax landscape seems like a daunting task. However, when you work with BTU Tax Consultant, you get a partner you can trust who is fully committed to helping you stay compliant.
The UAE has made a massive change to its economic strategy by putting in place a federal corporate tax. The goal is to diversify income and make taxes comparable to global standards. During this change, BTU Tax Consultant helps businesses with every step, from the initial registration to ongoing compliance. This way, you can be certain that you're compliant and avoiding any penalties.
The corporate tax in the UAE is a direct tax on the net profit of the country's businesses. A flat rate of 9% is charged on all taxable income over AED 375,000. It's part of the UAE's plan to become a well-known financial center around the world.
Corporate Tax was put in place by the Federal Tax Authority (FTA) and started to be used on June 1, 2023. Businesses on the mainland and in the Free Zone are both subject to this rule. However, qualifying Free Zone Persons (QFZPs) may get a 0% rate in some cases.
Following OECD rules, the goal of Corporate Tax is to bring in money and also encourage fair competition, openness, and international investment.
The Corporate Tax Law of the UAE gives a broad definition of "taxable persons." These are the main groups:
Even if a free zone company is eligible for the 0% rate on certain income, they still have to register. Registration makes sure they can get help and keeps them in line with the law.
Holding and special-purpose companies need to register even if they are dormant or minimal activity.
If a foreign legal person has a financial presence in the UAE, they need to register:
Foreign investors need to carefully check to see if their businesses in the UAE require them to be registered.
Natural Persons who do business or business activities in the UAE are also subject to corporate tax obligations. This includes business, professional, and other actions that generate money that are done under a trade license or permit.
For example, a freelance expert who makes 1.2 million AED a year from their business needs to register. A sole seller making AED 800,000 a year doesn't have to register yet, but they should get ready to do so once the threshold is crossed.
The FTA has explicitly stated that individuals and groups operating independently must also register. Firms like law firms, accounting firms, and professional partnerships where partners split income are all included.
The UAE's Domestic Minimum Top-up Tax (DMTT), which was put in place by Cabinet Decision 142 of 2024, now applies to large multinational groups with global consolidated income above €750 million (≈ AED 3.15 billion). This is in line with the Pillar Two Global Anti-Base Erosion Model Rules from the OECD.
For tax years that begin on or after January 1, 2025, these rules will apply.
Important parts:
Big companies should already:
Early alignment leads to a smoother transition, more trust with regulators, and a better situation as new rules become more established.
Make sure your business has all the necessary paperwork and systems in place before you start the UAE company tax registration process. Being ready makes sure that the application goes smoothly and helps you avoid fines or delays in processing.
Trade License: In order for your business to properly operate in the UAE, it must have a trade license that is still valid.
Records of finances: Make up up-to-date financial statements that show your income, costs, and profits. These will be used to figure out if you owe taxes and how much of your income is taxed.
Information about authorized signers: Identify the person or people who will handle tax issues for your business. If someone else is doing the filing, you may need to give them a Power of Attorney.
Emirates copies of your ID and passport Bring in valid forms of identification for any business owners, partners, or leaders.
Details on how to reach the business: These are your listed business address, phone number, and email address. All of these must be correct and up to date.
Clarification on entity type: Find out what kind of business structure you have (main land, free zone, branch, or foreign company) because it affects your eligibility, tax rates, and possible exemptions.
Status of VAT registration (if any): Make sure you have your Tax Registration Number (TRN) ready if you have already signed up for VAT. This will connect your tax accounts in the system of the Federal Tax Authority.
You can avoid delays or mistakes when you register your business for taxes once all of these things are in order.
Go to https://tax.gov.ae/en/services/corporate.tax.registration.aspx to access the EmaraTax website. Use your email address and phone number, or your UAE Pass, to sign up.
You'll see a screen with a list of Taxable Persons tied to your profile after you log in. If there are no Taxable Persons already listed, you can make a new one by giving it a formal name, a trade name, a license number, and information about its legal structure.
Go to the dashboard and find the Corporate Tax area. Then, click "Register." Follow the steps and rules shown on the screen.
Fill out the application form online and give detailed details about your business, such as:
Carefully check that all the information you entered is correct. Declare that the information given is correct and full.
Send in the Corporate Tax Registration application. After you are registered, you will get a TRN, which is necessary for tax purposes.
For the most precise and up-to-date information, we strongly suggest that you talk to the UAE tax experts at BTU Consultants; they can guide you throughout the process.
The first step is to determine who needs to register for company tax. The next step is to verify that your application is correct, that your licenses are in order, and that all of your deadlines have been met.
Our FTA-certified experts have helped several small and medium-sized businesses in the UAE follow the rules. When it comes to company tax registration and filing, we help mainland businesses, free zone businesses, partnerships, foreign investors, and individuals at every step of the way.
Start your Corporate Tax Registration Process Today! Get in touch with us to set up a free consultation.
Most companies in the UAE have to sign up for corporate tax. No matter how much profit a company makes, it has to register. People in the UAE who make more than AED 1 million from their business must register. Partnerships, multinationals, and exempt entities are also usually needed to register unless they are specifically exempt.
Yes, unless it is liquidated and taken off the record (deregistered).
Yes. Taxes are affected by profit limits, but not registration.
Most charities have to sign up and then ask to be excused.
Yes. Partnerships are taxed as individuals unless they are specifically exempt.
Yes, to build trust, get investors ready, and make progress go more smoothly.
Not at all. Reliefs, exemptions, and limits may lower your responsibility, but you still need to file.
The FTA can fine people a set AED 10,000 for registering late, even if they file on time.
Yes, unless it is set up as a part of a business that is already listed.
Once all of your obligations have been met, use EmaraTax to ask to be deregistered.