Have Any Questions?
+971 4 3295900
Corporate Tax
Our Services
CORPORATE TAX SERVICES
Corporate Tax is a form of direct tax levied on the net income or profit of corporations and other businesses. Corporate Tax is sometimes also referred to as “Corporate Income Tax” or “Business Profits Tax” in other jurisdictions.
Most countries in the world have a comprehensive Corporate Tax regime, including most of the countries in the Middle East.
The UAE Corporate Tax regime is effective for Financial Years starting on or after 1 June 2023.
- A Business that has a Financial Year starting on 1 July 2023 and ending on 30 June 2024 is subject to UAE Corporate Tax 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 Corporate Tax from 1 January 2024 (which is the beginning of the first Financial Year that starts on or after 1 June 2023).
UAE Corporate Tax applies to juridical persons incorporated in the UAE and to foreign juridical persons that are effectively managed and controlled in the UAE.
A foreign juridical person that operates in the UAE through a Permanent Establishment or that has a taxable nexus in the UAE would also be subject to Corporate Tax
Natural persons will be subject to Corporate Tax only if they are engaged in a Business or Business Activity in the UAE, either directly or through an Unincorporated Partnership or sole proprietorship.
UAE Corporate Tax rates
| Taxable Person | Applicable Corporate Tax Rate |
|---|---|
| Applicable Corporate Tax rate | 0% for Taxable Income up to and including AED 375,000. 9% for Taxable Income exceeding AED 375,000 |
| Qualifying Free Zone Persons (see section H: Tree Zand) | 0% on Qualifying Income. 9% on Taxable Income that is not Qualifying Income as specified in Cabinet Decision No. 55 of 2023. |
Each Taxable Person will be subject to the 0% Corporate Tax rate on their Taxable Income up to and including AED 375,000, irrespective of whether they conduct one Business or multiple Businesses. This does not include Qualifying Free Zone Persons, who will be subject to the 9% Corporate Tax rate on all of their non-Qualifying Income.
Each legal entity or natural person that is subject to UAE Corporate Tax is generally considered as one Taxable Person for Corporate Tax purposes. Where multiple legal entities apply to form a Tax Group and be treated as a single Taxable Person, these entities will only benefit from one AED 375,000 threshold. In other words, the AED 375,000 threshold for a Tax Group is not increased based on the number of legal entities that are part of the Tax Group.
Where the Federal Tax Authority establishes that a Taxable Person has artificially separated its business into several separate Taxable Persons to benefit from the AED 375,000 threshold more than once, this will be considered an abusive arrangement that can result in penalties and Taxable Income adjustments
Exempt Person
We help you see the world differently, discover opportunities you may never have imagined and achieve results that bridge what is with what can be.
- The UAE Federal and Emirate Governments and their departments, authorities and other public institutions; The UAE Federal and Emirate Governments and their departments, authorities and other public institutions;
- Companies wholly owned and controlled by a Government Entity that carry out a Mandated Activity, and that are listed in a Cabinet Decision;
- Businesses engaged in the extraction of UAE Natural Resources or related non-extractive activities that are subject to Emirate-level taxation, subject to meeting certain conditions; and
- Qualifying Public Benefit Entities that are listed in Cabinet Decision No. 37 of 2023 or any subsequent relevant decisions (click [here] to view the latest list).
The following Persons are exempted from UAE Corporate Tax upon approval of an application submitted to the Federal Tax Authority:
Qualifying Investment Funds that meet the prescribed conditions.
Public or private pension or social security funds that meet the conditions specified in Ministerial Decision No. 115 of 2023; and
UAE juridical persons that are wholly-owned and controlled by certain exempted entities and undertaking activities specified in paragraph (h) of Clause 1 of Article 4 of the Corporate Tax Law.
our impact
Our Impact Assessment of Corporate Tax Services in UAE
We will conduct an impact assessment of the Company in accordance with the provisions of UAE CT Law and related Cabinet Decisions, employing a “right first time” approach that prioritizes thorough planning and data collection. The objective of this process is to deliver high-quality results by minimizing the need for revisions and time consumption. If there are any modifications needed as our work advances, we will engage in discussions and incorporate them into the scope of work before moving forward
Our Approach
Plan
Mobilize our engagement team and establish a timeline for data collection. Gain insights into the business and existing tax functions, and mutually. define the scope of work. Finalize the agreed-upon timeframe for data gathering.
Analyze
Evaluate current or planned business structures, transactions, arrangements, and operations. Assess the repercussions of critical elements of the UAE Corporate Tax (CT) Law. Recognize and emphasize potential uncertain tax positions.
Evaluate
Evaluate current or planned business structures, transactions, arrangements, and operations. Assess the repercussions of critical elements of the UAE Corporate Tax (CT) Law. Recognize and emphasize potential uncertain tax positions.
Deliver
Provide a detailed report with feedback. Support CT implementation, compliance, and offer ad-hoc advisory services post-implementation.
-
1
Plan
Mobilize our engagement team and establish a timeline for data collection. Gain insights into the business and existing tax functions, and mutually. define the scope of work. Finalize the agreed-upon timeframe for data gathering.
-
2
Analyze
Evaluate current or planned business structures, transactions, arrangements, and operations. Assess the repercussions of critical elements of the UAE Corporate Tax (CT) Law. Recognize and emphasize potential uncertain tax positions.
-
3
Evaluate
Evaluate current or planned business structures, transactions, arrangements, and operations. Assess the repercussions of critical elements of the UAE Corporate Tax (CT) Law. Recognize and emphasize potential uncertain tax positions.
-
4
Deliver
Provide a detailed report with feedback. Support CT implementation, compliance, and offer ad-hoc advisory services post-implementation.