1
Register for corporate tax from June 2023 onwards.
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Your business will be subject to corporate tax from your first financial year starting on or after 1 June 2023.
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Every business will need to register for corporate tax, including free zone companies and freelancers.
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Corporate tax is separate from VAT. Even if you already have a VAT number, you will still need to register for corporate tax.
2
Keep proper accounting records.
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The UAE’s corporate tax law requires specific accounting records to be kept.
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Our team can help with your accounting and bookkeeping requirements and ensure your reporting is compliant with the law.
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Your company’s tax obligations will depend on what your accounting records say about your business.
Example: If you are exempt from corporate tax or if you qualify for the Small Business Relief rule, your accounting records must support your position.
3
File a corporate tax submission with the FTA.
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This step needs to be done after the end of your first taxable period.
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Even if you qualify for an exemption or tax relief, you still need to declare this by filing a tax submission with the FTA.
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Our highly experienced tax advisors can ensure that you benefit from any exemption or tax relief which is available to you.
IMPORTANT: While not all businesses will have to pay corporate tax, every business – even those in free zones – must comply with these three steps.
How much is the corporate tax in the UAE?
TIER 1
0 % Tax Rate
Businesses with annual net profits of up to AED 375,000 are subject to a 0% tax rate.
PROFITS UP TO
AED 375,000 = 0% Tax Rate
TIER 2
9 % Tax Rate
Businesses are subject to a 9% tax rate on annual net profits that exceed AED 375,000.
PROFITS OVER
AED 375,000 = 9% Tax Rate
TIER 3
Different Tax Rate
Large multinational companies may be subject to a higher tax rate, subject to Pillar Two of the Organisation for Economic Cooperation and Development (OECD) base erosion and profit shifting (BEPS) project. Companies with a total global revenue of over EUR 750 million (around AED 3.15 billion) will belong to this category.
PROFITS OVER
AED 3.5 billion = Higher Tax Rate