UAE Corporate Tax Guide 2024
Everything you need to know about the UAE Corporate Tax regime. Understand rates, exemptions, compliance requirements, and how to prepare your business for the new 9% corporate tax.
UAE Corporate Tax Rates
The UAE introduced Corporate Tax effective June 1, 2023
Taxable income up to AED 375,000
Taxable income above AED 375,000
Large multinationals under Pillar Two
Who is Subject to UAE Corporate Tax?
Corporate Tax applies to a wide range of business activities in the UAE. Understanding who is subject to CT is crucial for compliance.
All companies incorporated in the UAE including mainland and Free Zones
Foreign entities with a Permanent Establishment in the UAE
Individuals conducting business activities exceeding AED 1 million
Free Zone entities (may qualify for 0% on qualifying income)
Exempt from Corporate Tax
Important Corporate Tax Deadlines
Key dates for UAE Corporate Tax compliance
From the start of your first tax period
Usually aligned with financial year
After end of tax period
Same as return filing deadline
Free Zone Corporate Tax Benefits
Qualifying Free Zone Persons can benefit from a 0% Corporate Tax rate on qualifying income while still maintaining their Free Zone status.
- 0% on qualifying income - Transactions with other Free Zone entities and foreign income
- 9% on non-qualifying income - Mainland UAE transactions
- Substance requirements - Must have adequate substance in the Free Zone
- De minimis rule - Up to 5% non-qualifying income allowed
Qualifying Free Zone Activities
Corporate Tax Compliance Requirements
What your business needs to do to stay compliant
CT Registration
Register for Corporate Tax with the FTA and obtain a Tax Registration Number (TRN) for CT purposes.
Maintain Records
Keep financial records and supporting documents for at least 7 years as per FTA requirements.
Prepare Financial Statements
Prepare audited or reviewed financial statements based on applicable accounting standards.
Calculate Taxable Income
Determine taxable income by making necessary adjustments to accounting income.
File CT Return
Submit your Corporate Tax return via the EmaraTax portal within 9 months of year-end.
Pay Corporate Tax
Pay any Corporate Tax liability by the filing deadline to avoid penalties and interest.
Corporate Tax FAQs
Common questions about UAE Corporate Tax
When did UAE Corporate Tax start?
UAE Corporate Tax became effective on June 1, 2023. The first tax period begins on or after this date, depending on your financial year-end.
Is personal income taxed in UAE?
No, the UAE does not have personal income tax. Corporate Tax only applies to business profits, not salaries or employment income.
Do Free Zone companies pay Corporate Tax?
Qualifying Free Zone Persons can benefit from 0% Corporate Tax on qualifying income. However, they must register and file returns, and pay 9% on any non-qualifying income.
What is the Small Business Relief?
Businesses with revenue under AED 3 million can elect for Small Business Relief, treating their taxable income as zero. This relief is available until 2026.
Are dividends taxed under Corporate Tax?
Dividends received from UAE companies and qualifying foreign participations are generally exempt from Corporate Tax under the participation exemption.
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