Corporate Tax is a direct tax imposed on businesses' net profits. It occurred in the UAE on 1 June 2023, marking a shift from the traditionally tax-free business environment.
As of June 1, 2023, the UAE has implemented a 9% Corporate Tax on annual taxable business profits exceeding AED 375,000. This tax applies to most mainland and free zone entities, with specific exemptions and benefits based on business activities and location.
You are required Corporate Tax registration in UAE if your business fits into any of the following categories
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Corporate Tax is a direct tax imposed on businesses' net profits. It occurred in the UAE on 1 June 2023, marking a shift from the traditionally tax-free business environment.
All UAE-based businesses earning taxable income above the threshold the Ministry of Finance set must register and pay Corporate Tax, except for those explicitly exempted (e.g., natural resource companies, qualifying free zone entities).
The standard Corporate Tax rate is 9% on taxable income exceeding AED 375,000. Income below this threshold is taxed at 0%.
We offer complete Corporate Tax solutions, including:
You should start by assessing your financial structure, organizing documentation, updating accounting practices, and consulting a tax advisor to ensure compliance with new obligations.
Penalties include fines for late registration, non-filing, incorrect returns, and failure to maintain records. These can significantly impact business continuity and reputation.
Free Zone businesses can benefit from a 0% Corporate Tax rate on qualifying income, provided they meet specific criteria and maintain adequate substance in the UAE.
Yes. We provide expert support for FTA audits, assessments, and appeals, ensuring your rights are protected and obligations fulfilled.
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