Corporate Tax is a direct tax imposed on the net profits of businesses operating in the UAE. Introduced to align with international tax standards, it applies to most companies and business activities conducted in the country. Under the current regime, taxable profits up to AED 375,000 are generally subject to a 0% rate, while profits exceeding this threshold are taxed at 9%.
Businesses are required to register for Corporate Tax, maintain proper accounting records, file tax returns, and comply with the regulations issued by the UAE tax authorities. Certain entities, including qualifying free zone companies, may benefit from a 0% tax rate on qualifying income, subject to specific conditions. Corporate Tax promotes transparency, strengthens the UAE’s business environment, and supports sustainable economic growth while maintaining the country’s competitive tax framework.
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Corporate Tax in the UAE is a direct tax levied on the net profits of businesses operating in the country. Introduced in 2023, it is administered by the Federal Tax Authority (FTA). The standard rate is 9% on taxable income exceeding AED 375,000, while income up to this threshold is generally taxed at 0%. It applies to most companies, with certain exemptions and special provisions for free zone entities that meet qualifying conditions.
CBMC delivers expert corporate tax solutions that help businesses stay compliant with UAE tax regulations while optimizing their tax position. Our experienced professionals provide practical guidance, proactive planning, and personalized support to ensure your tax obligations are managed efficiently.
Most businesses and legal entities operating in the UAE, including mainland companies and many free zone entities, are required to register for Corporate Tax with the Federal Tax Authority (FTA).
Taxable income up to AED 375,000 is generally taxed at 0%, while taxable income exceeding AED 375,000 is taxed at 9%.
Businesses are generally required to file a Corporate Tax return within nine months after the end of their relevant tax period.
Eligible businesses may benefit from Small Business Relief, subject to meeting the conditions and thresholds specified by the UAE tax authorities.
Businesses should maintain accurate accounting records, financial statements, invoices, contracts, and supporting documentation to substantiate their tax position.
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