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Introduction

Overview of Corporate Tax

Stay compliant, efficient and prepared with our expert corporate tax services. We guide businesses through every step of UAE corporate tax-registration, filing, audit support, and strategic planning-to ensure minimal risk, maximum compliance, and optimal tax efficiency.

  • Expert & Updated

    We monitor all regulatory changes (laws, FTA guidance, international tax developments) so you're never caught off guard.

  • Precise & Secure

    Detailed preparation, documentation, and review minimize errors and reduce risk of fines or audits.

  • Efficiency & Savings

    Proper tax planning, incentive utilization, and organizational structuring help save costs where legally possible.

  • Complete Support

    From registration to strategy to audit, we cover every aspect of corporate tax so you can focus on your core business.

What Is Corporate Tax in the UAE

Corporate tax is a direct tax imposed on net profits of companies and eligible entities. UAE's tax law (Federal Decree-Law No. 60 of 2023, amending Decree-Law No. 47 of 2022) mandates that businesses whose financial year begins on or after 1 June 2023 are subject to corporate tax.

It applies across all Emirates, including free zones (subject to compliance requirements), and covers foreign companies conducting business in the UAE. Certain entities, incomes, and transactions may be exempt under specific conditions.

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Our Services

Corporate Tax Registration

We assist with registering your business with the UAE's Federal Tax Authority (FTA), ensuring accurate documentation, timely submission and compliance from the onset.

Corporate Tax Filing

Our experts handle preparation and submission of tax returns, ensuring data correctness, that deductions/exemptions are appropriately claimed, and filings are done before deadlines to avoid penalties.

Audit Assistance & Review Support

If your tax filings are reviewed by authorities, we'll support you through the process: document preparation, clarification of transactions, representation and liaison with auditors to resolve issues.

Tax Strategy & Advice

We help structure your transactions and finances to optimize tax efficiency, using exemptions, incentives, and reorganizations while ensuring full UAE compliance.

Who Is Affected

  • All businesses and commercial entities in the UAE operating under a license.

  • Free-zone companies that meet certain regulatory and operational criteria.

  • Foreign entities and individuals regularly doing business in the UAE.

  • Entities involved in financial, real-estate, construction, brokerage, or agency operations, etc.

Key Exemptions & Special Cases

  • Income from dividends, capital gains on qualifying shareholdings, and certain intra-group re-organizations can be exempt under conditions.

  • Natural resource extraction remains under Emirate-level corporate taxation.

  • Individuals earning only salaries, bank interest or other personal investment income (in certain situations) are generally not subject to corporate tax at the corporate entity level.

Corporate Tax Rates

  • 0% on taxable income up to AED 375,000

  • 9% on taxable income exceeding AED 375,000

  • A separate rate is applied to large multinationals under "Pillar Two" / OECD frameworks (for those that meet threshold criteria)

Frequently Asked Questions

Who needs to pay corporate tax in the UAE?

UAE corporate tax applies to businesses and commercial activities, with a standard 9% rate on taxable income above AED 375,000. Some entities and free zone businesses have specific rules depending on their activity.

What is the UAE corporate tax rate?

The standard UAE corporate tax rate is 9% on taxable income above AED 375,000, with 0% applied on taxable income up to that threshold to support small businesses and startups.

Do free zone companies pay corporate tax?

Free zone companies may benefit from a 0% rate on qualifying income if they meet the conditions for a Qualifying Free Zone Person, but non-qualifying income can be taxed. The treatment is assessed case by case.

How does Exiloz support corporate tax compliance?

Exiloz helps with corporate tax registration, assessing your tax position, preparing accounting evidence, and filing accurate returns within FTA deadlines.

When did UAE corporate tax start?

UAE corporate tax applies to financial years beginning on or after 1 June 2023, under Federal Decree-Law No. 47 of 2022.