Corporate Tax was introduced in the UAE as part of the country’s commitment to international tax standards and economic transparency.
It applies to all businesses operating in the UAE, including Mainland and Free Zone companies (with exemptions depending on activity and status).
Effective from 1 June 2023, UAE Corporate Tax is set at:
– **0%** on taxable income up to AED 375,000
– **9%** on taxable income above AED 375,000
Applies to:
– Mainland companies
– Free Zone companies (unless qualifying for 0%)
– Foreign companies with UAE-sourced income
– Individuals with commercial business licences
All UAE businesses must register, including:
– LLCs
– Sole proprietors
– Free Zone entities
– Partnerships
– Branches of local or foreign companies
Even companies with **no income** must register and file returns if licensed.
Free Zone companies may qualify for **0% Corporate Tax** if they:
– Maintain adequate economic substance
– Conduct “Qualifying Activities”
– Do not conduct restricted activities
– Keep audited financial statements
VADA checks eligibility and ensures compliance.
FTA account creation
Entity registration
Tax Registration Number (TRN) issuance
Review of business structure
Identification of qualifying income
Free Zone 0% status review
Ledger organisation
VAT alignment
Financial record preparation
Calculation of taxable income
Adjustments for allowable deductions
Final return submission through FTA portal
Audit preparedness
Avoidance of penalties
Annual financial statement reviews
STEP 1 — Register business for Corporate Tax
STEP 2 — Receive Corporate Tax TRN
STEP 3 — Set up accounting system
STEP 4 — Prepare financial statements
STEP 5 — Calculate taxable income
STEP 6 — File annual tax return
STEP 7 — Maintain compliance records
– Avoid penalties and non-compliance
– Clean, accurate filings
– Full accounting support
– Free Zone 0% eligibility assessment
– Structuring advice to reduce liability
– Complete end-to-end management
– Professional guidance for audits
