Introduction
The introduction of Corporate Tax in the UAE marked a significant shift in the country’s fiscal landscape. Effective for financial years starting on or after June 1, 2023, the UAE Corporate Tax applies to all businesses operating within the country.
Who Needs to Register?
All businesses operating in the UAE are required to register for Corporate Tax with the Federal Tax Authority (FTA). This includes:
- Mainland companies
- Free zone entities
- Foreign entities with a permanent establishment in the UAE
Registration is mandatory regardless of whether the business exceeds the taxable income threshold.
Tax Rates
The UAE Corporate Tax follows a tiered structure:
- 0% on taxable income up to AED 375,000
- 9% on taxable income exceeding AED 375,000
- A different rate may apply to large multinationals meeting specific criteria under OECD Pillar Two
Key Deadlines
Businesses must file their Corporate Tax returns within nine months from the end of the relevant tax period. For example, a business with a financial year ending December 31, 2024, would need to file by September 30, 2025.
Free Zone Considerations
Qualifying Free Zone Persons can benefit from a 0% Corporate Tax rate on qualifying income, provided they meet certain substance and activity requirements. Non-qualifying income remains subject to the standard 9% rate.
How Daribah Can Help
Navigating the Corporate Tax landscape requires careful planning and precise execution. At Daribah, we provide end-to-end support — from registration and filing to strategic planning and audit preparation. Our team ensures your business stays compliant while optimizing your tax position.