Are you ready to tackle the tides of UAE Corporate Tax?
From understanding the latest corporate tax laws to implementing effective strategies, being prepared is the key to success. It’s time to ensure that you’re fully equipped to navigate UAE’s ever-changing tax landscape!
Shared Responsibility, Shared Benefits:
Embrace Corporate Tax in UAE
Reliable Corporate Tax Services in Dubai
Each tax has its own challenges, and these challenges must be met robustly in order to achieve maximum tax efficiency and compliance. Our Team of experts with significant experience in corporate Tax and Transfer pricing will add value through solutions and strategies to your business. Our team is prepared to assist you through each stage of the corporate tax compliance, from enrolling your business through registration, submitting your corporate tax return and to pay tax dues on time to meet deadline.
What is Corporate Tax?
UAE Corporate Tax will be applicable at the following rates:
Taxable Income
UAE CT Rate
Table income not exceeding AED 375,000
0%
Qualifying Income of a Qualifying Free Zone Person
0%
Taxable income Exceeding AED 375,000
9%
Non-Qualifying Income of a Qualifying Free Zone Person
9%
Our Corporate Tax Services
Corporate Tax Registration
For a seamless corporate tax registration process, rely on our expert team for efficient and hassle-free assistance.
Corporate Tax Impact Study
Understanding Corporate Tax's true impact is crucial for minimizing liabilities, maximizing savings, and ensuring business success.
Corporate Tax Return Filing
Seeking assistance with Corporate Returns? Our team aids in document preparation, tax liability calculation, and compliance.
Who is subject to Corporate Tax?
Corporate Tax applies to the following “Taxable Persons”:
- UAE companies and other juridical persons that are incorporated or effectively managed and controlled in the UAE.
- Natural persons (individuals) who conduct a Business or Business Activity in the UAE as specified in a Cabinet Decision to be issued in due course.
- Non-resident juridical persons (foreign legal entities) that have a Permanent Establishment in the UAE (which is explained under Section 8).
- Juridical persons established in a UAE Free Zone are also within the scope of Corporate Tax as “Taxable Persons” and will need to comply with the requirements set out in the Corporate Tax Law. However, a Free Zone Person that meets the conditions to be considered a Qualifying Free Zone Person can benefit from a Corporate Tax rate of 0% on their Qualifying Income (the conditions are included in Section 14).
Features of Corporate Taxation in UAE
UAE Corporate Tax Filing & Deadlines
The corporate tax period changes based on when the company’s financial year comes to an end.
| Entities With Financial Year Ending | First Corporate Tax Period | CT Return Filing and Payment Due Date |
|---|---|---|
| 30 June | 1 July 2023 - 30 June 2024 | 31 March 2025 |
| 31 December | 1 January 2024 - 31 December 2024 | 30 September 2025 |
| 31 March | 1 April 2024 - 31 March 2025 | 31 December 2025 |
Expert Corporate Tax Consultants in Dubai: Your Trusted Financial Partners
ACL tax consultants, an experienced corporate tax advisors in Dubai, help businesses all over UAE with expert guidance on corporate tax matters. We have a proficient team of accounting professionals who possess extensive knowledge of the latest accounting practices and regulations in the UAE. Recognizing the unique financial and accounting requirements of each business, we deliver tailored solutions that specifically address these needs!
With ACL as your trusted partner, businesses can rely on us for comprehensive financial, accounting assistance, and account outsourcing & bookkeeping services enabling them to thrive in the UAE market. For further information about corporate tax laws in the UAE, Dubai’s corporate tax rates, as well as the process to register for corporation tax online, please get in touch with us today!
Frequently Asked Questions
The following persons are exempt from UAE CT, either automatically or by way of application:
- The UAE Federal and Emirate Governments and their departments, authorities and other public institutions;
- Wholly Government-owned companies that carry out a mandated activity, and that are listed in a Cabinet Decision;
- Businesses engaged in the extraction of UAE natural resources and related non-extractive activities that are subject to Emirate-level taxation after meeting certain conditions;
- Public Benefit Entities that are listed in a Cabinet Decision;
- Investment Funds that meet the prescribed conditions;
- Public or private pension or social security funds that meet certain conditions; and
- UAE juridical persons that are wholly-owned and controlled by certain exempted entities after meeting certain conditions.
The UAE CT regime will become effective for financial years starting on or after 1 June 2023.
Examples:
- A business that has a financial year starting on 1 July 2023 and ending on 30 June 2024 will become subject to UAE CT from 1 July 2023 (which is the beginning of the first financial year that starts on or after 1 June 2023).
- A business that has a financial year starting on 1 January 2023 and ending on 31 December 2023 will become subject to UAE CT from 1 January 2024 (which is the beginning of the first financial year that starts on or after 1 June 2023).
In addition to a 0% CT rate for taxable income up to and including AED 375,000, small businesses with revenue below AED 3 Million can claim ‘small business relief’ and be treated as having no taxable income during the relevant Tax Period and may be subject to simplified compliance obligations. To claim small business relief, an election must be made to the FTA.
Tax losses can, subject to certain conditions, be offset against the taxable income of future periods, up to a maximum of 75% of the taxable income in each of those future periods. Any excess (unused) tax losses can be carried forward and used against taxable income of future Tax Periods indefinitely.
Example
A taxpayer has taxable income of AED 100,000 and carried forward losses of AED 125,000. It can offset (75% x AED 100,000) = AED 75,000 of its losses carried forward in the relevant Tax Period, reducing its taxable income to AED 25,000.
The amount of tax losses available for carry forward to subsequent Tax periods would reduce to AED 50,000 (AED 125,000 – AED 75,000).