Understanding UAE Corporate Tax: A Complete Guide for Businesses
The United Arab Emirates introduced corporate tax effective from June 1, 2023, marking a significant shift in the country's tax landscape. This comprehensive guide will help businesses understand their obligations and ensure compliance.
What is UAE Corporate Tax?
UAE Corporate Tax is a direct tax levied on the net income or profit of corporations and businesses. It applies to financial years starting on or after June 1, 2023, making it crucial for businesses to understand their obligations.
Who Needs to Register?
Corporate tax registration is mandatory for:
- • UAE resident companies and other juridical persons
- • Non-resident persons conducting business in the UAE
- • Natural persons conducting business activities in the UAE
- • Free zone persons earning income from mainland UAE
Corporate Tax Rates
Standard Rate
9%
On taxable income exceeding AED 375,000
Small Business Relief
0%
On taxable income up to AED 375,000
Key Compliance Requirements
Tax Registration
Businesses must register for corporate tax and obtain a Tax Registration Number (TRN) through the Federal Tax Authority portal.
Record Keeping
Maintain comprehensive financial records and supporting documents for at least 7 years.
Tax Return Filing
Submit annual corporate tax returns within 9 months of the end of your financial year.
Payment
Corporate tax must be paid within 9 months from the end of the relevant tax period.
How We Can Help
Navigating the corporate tax landscape can be complex. At Agile Financials, we provide comprehensive support including:
- ✓ Corporate tax registration and TRN acquisition
- ✓ Tax return preparation and filing
- ✓ Tax planning and optimization strategies
- ✓ Ongoing compliance support and advisory
Need Corporate Tax Assistance?
Our experts are ready to help you navigate UAE corporate tax requirements.