UAE Corporate Tax was introduced under the Law, known as Federal Decree-Law No. 47 of 2022. The tax applies to companies and individuals conducting business in the UAE. Every business in the UAE should necessarily ensure compliance with registration, maintenance of records, filing, and payment with the FTA.
Corporate Tax Compliance means following all tax rules from registration to filing annual returns, paying the correct amount of tax in time.
Key areas of compliance include:
It applies to taxable persons, whether residents or non-residents. The related law in UAE defines who is required to be registered and pay corporate tax.
Main categories of taxable persons:
Example:
Every freelancer in the UAE and a person with a business license must check whether their income exceeds the taxable threshold and undertakes the necessary steps toward registration.
To obtain a TRN, every taxable person needs to register with the Federal Tax Authority (FTA) along with the necessary details on the EmaraTax portal.
Key points on registration and filing:
Each company is required to file its Annual Corporate Tax Return within nine months from the end of its financial year.
Examples:
Key points:
The Corporate Tax rates UAE depend on the taxable income of the business.
| Taxable Income (AED) | Corporate Tax Rate |
|---|---|
| Up to AED 375,000 | 0% tax rate |
| Above AED 375,000 | 9% tax rate |
| Large multinational groups (global revenues above €750 million) | 15% (DMTT) |
Under the OECD Pillar Two, Domestic Minimum Top-Up Tax (DMTT) applies to ensure that large companies pay a minimum of 15% effective tax globally.
Free Zone Tax Benefits and Compliance Requirements
Free Zone Persons UAE who qualifies as Qualifying Free Zone Persons (QFZPs) may enjoy special tax benefits in the UAE.
Main requirements:
Other free zone compliance requirements include classifying income-qualifying vs. non-qualifying-and-filing corporate tax returns, even for those enjoying 0% tax on qualifying income.
Example:
A Dubai Internet City company must verify the type of income it generates and confirm that it maintains qualification for FTA free zone compliance to take advantage of 0% corporate benefits.
For Dubai corporate tax compliance, there are strict penalties imposed by the Federal Tax Authority.
Common penalties include:
How to ensure compliance:
Remaining compliant eliminates penalties and lends confidence to the taxing authorities.
All taxable businesses and individuals carrying out commercial activities in the UAE must pay Corporate Tax. This includes resident companies, freelancers, and certain non-residents with a permanent establishment in the UAE.
The UAE Corporate Tax rate is 9% on taxable income above AED 375,000. Income up to AED 375,000 is taxed at 0%. Large multinational groups may pay 15% under the Domestic Minimum Top-Up Tax (DMTT).
Businesses must register online through the Federal Tax Authority’s (FTA) EmaraTax portal. Provide your trade license, Emirates ID, and other required documents to receive a Tax Registration Number (TRN).
The FTA charges AED 10,000 for late registration and AED 500–1,000 per month for late filing. A 14% annual interest may apply for delayed payments.
Keep accurate financial records and file your Corporate Tax Return on time. Work with a professional tax advisor or FTA-authorized tax agent to avoid penalties and stay updated on new tax rules.