A structured, legal roadmap designed to help Dubai mainland and free-zone enterprises transition seamlessly into the UAE's federal corporate tax framework under Federal Decree-Law No. 47 of 2022.
Corporate Tax in the United Arab Emirates was introduced via **Federal Decree-Law No. 47 of 2022** on the Taxation of Corporations and Businesses. The law took effect for tax periods starting on or after **June 1, 2023**. This shift represents a major change for UAE businesses, moving from a zero-tax environment to a standard corporate tax rate of **9%** on taxable income that exceeds **AED 375,000**. Net profits below this statutory threshold are taxed at **0%** to support start-ups and SMEs.
To comply with the Federal Tax Authority (FTA) guidelines and avoid administrative penalties, companies must understand how accounting profits relate to taxable profits, check their trade license categories, and meet the specific EmaraTax registration and return deadlines.
A common mistake is assuming that your bookkeeping net profit automatically represents your taxable net profit. Under the UAE Corporate Tax Law, specific tax adjustments must be applied to accounting profits to determine taxable income. Non-allowable or restricted adjustments include:
To support start-ups and small enterprises, the UAE Ministry of Finance introduced the **Small Business Relief** program. Under **Article 21** of the Corporate Tax Law:
Under **FTA Decision No. 3 of 2024**, mandatory registration deadlines have been established for all corporate taxable entities. These deadlines are determined by the month in which the business's original Trade License was issued (regardless of the year of issue):
According to the UAE Tax Procedures Law, all corporate entities and commercial businesses must keep structured financial records to support their tax declarations.
Our executive tax advisory team is available to review your corporate registers, prepare statutory accounts, and file tax returns seamlessly under the leadership of Managing Partner Safvan.
Corporate tax readiness is less about the return itself and more about the groundwork that makes the return straightforward. The starting point is administrative: confirm you are registered and hold a tax registration number, and pin down your tax period so every deadline that follows is anchored to the right year-end. From there the work moves to the numbers — a set of IFRS-compliant financial statements is the foundation everything else is built on.
The judgement layer is where readiness is really tested. You need to identify exempt and qualifying income, review related-party and connected-person transactions against the arm’s-length standard, and, for a free-zone entity, assess honestly whether it meets the conditions for the 0% qualifying rate. Then come the elections — Small Business Relief, the realisation basis and transitional relief — each of which is chosen in the return and mostly cannot be added later.
Finish by setting the calendar and the cash: mark the nine-month filing and payment deadline, and provision for the 9% liability on taxable income above AED 375,000 so the payment is funded rather than a surprise.
Within nine months of the end of your first tax period. A business with a financial year ending 31 December, for example, files and pays by the following 30 September. The same nine-month deadline applies to the payment.
Yes. Free-zone entities must register, keep proper financial records and file a return, even where they expect the 0% qualifying rate. The 0% has to be supported by meeting the qualifying conditions, which is part of readiness, not a reason to skip it.
IFRS-compliant financial statements, supporting ledgers and invoices, related-party and connected-person schedules, fixed-asset records, and documentation for any relief or election you claim — all retained for the statutory period in case of an FTA review.
UAE corporate tax is a federal tax on business profits introduced for financial years starting on or after 1 June 2023, with a standard rate of 9% on taxable income above the AED 375,000 threshold.
Prepare by registering on EmaraTax, keeping accurate accounting records, identifying your taxable income and deductions, and tracking deadlines. Exiloz provides a readiness checklist to organise these steps.
You need financial statements, accounting records, supporting evidence for income and expenses, and documents that justify deductions and adjustments. Records must be kept for the required retention period.
Corporate tax returns are generally filed within nine months of the end of the relevant financial year through EmaraTax. Confirm your exact deadline based on your financial year.
Yes. Exiloz helps you register, organise records, assess your tax position and build a compliance routine so you are ready to file accurately and on time.
