Corporate Taxation

UAE Corporate Tax Registration and Consultancy Services

With the implementation of the new UAE corporate tax law, many companies face the challenge of navigating unfamiliar regulations and procedures. Our team of tax specialists is ready to assist you in understanding how corporate tax applies to your business, leveraging tax exemptions and reliefs, and ensuring timely compliance with regulatory deadlines to avoid penalties.

corporate-tax-calculating
corporate-tax-calculating

Understanding UAE Corporate Tax and Its Applicability

Corporate tax (CT) is a direct tax imposed on the net income or profits earned by corporations and other entities from their business activities. This taxation framework is outlined in Federal DecreeLaw No. 60 of 2023, which amends certain provisions of Federal DecreeLaw No. 47 of 2022 concerning the Taxation of Corporations and Businesses.

UAE Corporate Tax applies to a wide range of entities and activities within the UAE, including:

  • All businesses and individuals conducting commercial activities under a valid commercial license in the UAE.

  • Free zone businesses, while continuing to uphold existing UAE Corporate Tax incentives for compliant free zone entities not engaging in mainland UAE business activities.

  • Foreign entities and individuals engaged in ongoing or regular trade or business activities within the UAE.

  • Banking operations and businesses involved in real estate management, construction, development, agency, and brokerage activities.

UAE Corporate Tax Rates

According to the Ministry of Finance, the UAE Corporate Tax rates are as follows:

  • Taxable income up to AED 375,000 incurs a 0% tax rate.

  • Taxable income exceeding AED 375,000 faces a 9% tax rate.

  • Large multinationals meeting specific criteria, referencing 'Pillar Two' of the OECD Base Erosion and Profit Shifting Project, will be subject to a separate tax rate.

Exemptions in UAE Corporate Taxation

Certain entities and types of income are exempt from UAE Corporate Tax, including:

Natural Resource Extraction

Businesses involved in the extraction of natural resources are exempt, maintaining their current Emiratelevel corporate taxation.

Dividends and Capital Gains

Dividends and capital gains earned by UAE businesses from qualifying shareholdings are exempt from UAE Corporate Tax.

IntraGroup Transactions and Reorganizations

Qualifying intragroup transactions and reorganizations are exempt, provided they meet specified conditions.

Additionally, UAE Corporate Tax does not apply to the following:

  • Salaries and Employment Income

    Individuals earning salaries and other employment income, whether from the public or private sectors, are not subject to corporate tax.

  • Bank Interest and Savings Income

    Interest and other income derived by individuals from bank deposits or savings schemes are exempt.

  • Foreign Investors' Income

    Income from dividends, capital gains, interest, royalties, and other investment returns earned by foreign investors is not subject to UAE Corporate Tax.
    Personal Real Estate Investments: Personal real estate investments by individuals are exempt.

  • Personal Real Estate Investments

    Personal real estate investments by individuals are exempt.

  • Personal Ownership of Shares or Securities

    Dividends, capital gains, and other income from personal ownership of shares or securities are not subject to corporate tax.

How Our Tax Specialists Can Help

Our team of experienced tax specialists is here to guide you through the process. We offer the following services:

Corporate Tax Registration

Assisting businesses with the registration process for UAE Corporate Tax, ensuring that all necessary steps are completed accurately and efficiently.

Tax Advisory

Understanding the implications of the new tax law for your business, including detailed consultations and planning.

Compliance Assistance

Ensuring that your business meets all regulatory requirements and deadlines to avoid penalties.

Tax Exemptions and Reliefs

Identifying and leveraging available tax exemptions and reliefs to minimize your tax liability.

Document Preparation and Submission

Assisting with the preparation and submission of necessary documentation to ensure compliance with the new tax regulations.

Get in Touch

If you need help understanding and complying with the new UAE Corporate Tax regulations, contact our team of tax specialists today. We are committed to providing expert guidance and support to help your business navigate these new requirements efficiently.

Reach out to us today to schedule a consultation and learn how we can help your business thrive under the new UAE Corporate Tax law.