Corporate Tax Consultant in UAE
The United Arab Emirates (UAE) enacted Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses, commonly known as the Corporate Tax Law, on December 9, 2022. This law, which applies to financial years starting on or after June 1, 2023, sets out the legal foundation for implementing and managing Federal Corporate Tax across the UAE.
To successfully navigate the changing corporate tax environment and stay compliant, it’s advisable to consult a professional tax advisory firm. VAT Registration UAE, a leading corporate tax consultant in the UAE, provides a full range of tax advisory and compliance services to businesses nationwide. Our expert team of corporate tax specialists is equipped with in-depth knowledge and experience to handle all your tax obligations efficiently. By partnering with us, you can ensure full compliance while focusing on your business growth with complete peace of mind.
Corporate Tax Registration in the UAE
All individuals and entities that are subject to corporate tax, including those operating in free zones, are required to register for Corporate Tax and obtain a unique Corporate Tax Registration Number (TRN).
The Federal Tax Authority (FTA) may also require certain exempt persons or entities to register for corporate tax.
Every taxable individual or business must file a Corporate Tax Return for each taxable period, typically within nine months after the end of that period.
Similarly, any corporate tax due must be paid within nine months from the close of the relevant financial period.
Applicability of UAE Corporate Tax
Key Areas Covered Under Corporate Tax in the UAE
Free Zone Businesses
Free zone companies are also subject to Corporate Tax; however, they may continue to enjoy Corporate Tax incentives if they meet specific regulatory conditions and operate exclusively within free zones. In other words, businesses that conduct all their activities inside free zones and do not engage with the UAE mainland can still benefit from these incentives.Mainland Businesses and Licensed Individuals
All businesses and individuals holding a commercial license in the UAE are liable for Corporate Tax. This applies to all entities and individuals carrying out commercial, industrial, or professional activities within the country.Foreign Entities and Individuals
Foreign companies or individuals conducting regular or continuous business activities within the UAE are also subject to Corporate Tax. This provision ensures that foreign entities generating income from UAE-based operations contribute fairly to the national tax framework.Banking and Financial Institutions
Banks and financial institutions, including those engaged in activities such as deposit-taking, lending, and providing financial services, fall within the scope of Corporate Tax in the UAE. This ensures that all major sectors contributing to the economy are covered under the tax system.
Corporate Tax Rate in UAE
The United Arab Emirates (UAE) offers one of the most attractive Corporate Tax regimes in the Middle East, designed to support business growth and encourage foreign investment. Entrepreneurs and companies are advised to seek professional Corporate Tax advisory services to understand how the tax framework and rates apply to their specific business models.
Corporate Tax Rates in the UAE
Corporate Tax in the UAE is levied based on a business’s annual taxable income, structured as follows:
9% Corporate Tax applies to taxable income exceeding AED 375,000.
0% Corporate Tax applies to taxable income up to AED 375,000, allowing small businesses and startups to benefit from a tax-free threshold.
Who Is Subject to Corporate Tax in the UAE?
Corporate Tax applies to specific entities and individuals referred to as “Taxable Persons.” These include:
Companies and Juridical Persons
All companies and other legal entities incorporated, managed, or controlled within the UAE are required to comply with Corporate Tax obligations under the law.Natural Persons (Individuals) Engaged in Business Activities
Individuals conducting business or commercial activities within the UAE, as outlined in an upcoming Cabinet Decision, are also considered taxable persons.Non-Resident Juridical Persons with a Permanent Establishment
Foreign entities that have a Permanent Establishment (PE) in the UAE, as defined under Section 8 of the Corporate Tax Law, are subject to tax on income attributable to their UAE-based operations.Free Zone Entities
Companies registered in UAE Free Zones are also classified as Taxable Persons and must adhere to the Corporate Tax Law. However, if a Free Zone Person qualifies as a “Qualifying Free Zone Person,” they may benefit from a 0% Corporate Tax rate on their Qualifying Income, as specified in Section 14 of the legislation.
Withholding Tax in the UAE
For non-resident individuals or entities without a Permanent Establishment in the UAE — or those earning UAE-sourced income not connected to a PE — Withholding Tax (WHT) may apply.
Withholding Tax is deducted at the source by the payer on behalf of the recipient.
It typically applies to cross-border payments, such as dividends, interest, royalties, and other income streams.
The current Withholding Tax rate in the UAE is 0%, ensuring the country remains a tax-friendly hub for international business and investment.
Who is Exempted from UAE Corporate Tax
In the UAE, certain individuals and entities are exempt from Corporate Tax, either automatically or upon application, in line with the Corporate Tax Law. These exemptions aim to support public institutions, strategic sectors, and socially beneficial entities.
Corporate Tax Exemptions in the UAE
UAE Federal and Emirate Governments
This includes government departments, authorities, and other public institutions.Wholly Government-Owned Companies
Companies fully owned by the government that engage in activities mandated by a Cabinet Decision are exempt.Businesses in the Natural Resource Sector
Companies involved in extracting UAE natural resources and related non-extractive activities may be subject to Emirate-level taxation, provided they meet specific conditions.Public Benefit Entities
Entities classified as Public Benefit Entities, as listed in a Cabinet Decision, are eligible for exemption.Investment Funds
Investment funds that meet the criteria prescribed under the law are exempt from Corporate Tax.Pension and Social Security Funds
Public or private pension or social security funds that satisfy certain regulatory conditions are exempt.Juridical Persons Owned by Exempt Entities
UAE juridical persons wholly owned and controlled by any of the exempt entities mentioned above may also qualify for exemption, subject to fulfilling specific conditions.
These exemptions ensure that government operations, public welfare activities, and strategic economic sectors can function without the additional burden of Corporate Tax, while still maintaining compliance for other taxable entities.
Relevant Documents required for Corporate Tax Registration in UAE
To register for Corporate Tax in the UAE, businesses are required to submit specific documents as part of the online registration process. Ensuring all documents are complete and accurate helps facilitate a smooth registration with the Federal Tax Authority (FTA).
Required Documents for Corporate Tax Registration
Valid Trade License
A copy of the company’s current trade license.Passport Copies
Valid passports of the owner(s) or partners associated with the license.Emirates ID
Valid Emirates ID of the owner(s) or partners associated with the license.Memorandum of Association (MOA) or Power of Attorney (POA)
Relevant legal document proving ownership or authority to act on behalf of the company.Responsible Person’s Contact Details
Mobile number and email address of the individual responsible for managing Corporate Tax matters.Company Contact Information
Full company address, including P.O. Box and other relevant contact details.Corporate Tax Period
The specific fiscal period for which the company will be filing its Corporate Tax returns.
Submitting these documents accurately ensures that businesses can obtain their Corporate Tax Registration Number (TRN) and remain compliant with UAE tax regulations.
Corporate Tax Services in UAE – Expertise and Efficiency for Your Business
ChatGPT said:
Are you seeking reliable corporate tax services in the UAE? VAT Registration UAE is your trusted partner for all corporate tax solutions. Our team of dedicated corporate tax consultants provides comprehensive, tailored services to ensure full compliance, optimize tax benefits, and simplify your corporate tax processes.
Corporate Tax Compliance and Registration Simplified
Managing corporate tax obligations can be complex and time-consuming. Our experts will guide you through the entire process, from Corporate Tax registration to filing and ongoing compliance. With our support, you can meet all regulatory requirements and deadlines efficiently, saving both time and resources.
Expert Corporate Tax Advisory Services
At VAT Registration UAE, we recognize that every business has unique needs. Our consultants work closely with you to develop personalized strategies that optimize your tax position. We provide expert advisory on tax planning, exemptions, incentives, and business structuring, helping you minimize tax liabilities while maximizing savings.
With VAT Registration UAE, navigating corporate tax in the UAE becomes simple, efficient, and hassle-free.
Corporate Tax Exemption Expertise
Are you eligible for Corporate Tax exemptions in the UAE? Our team of corporate tax consultants possesses extensive knowledge of UAE tax laws and regulations, including the full range of available exemptions. We will assess your eligibility and guide you through the process, ensuring you maximize the benefits you are entitled to.
Simplified Corporate Tax Filing
Accurate and timely filing of corporate tax returns is essential for compliance. Our experts handle every aspect of the process — from preparing documentation and calculating tax liabilities to submitting returns. With our streamlined approach, you can have peace of mind knowing your corporate tax filing is in capable hands.
Outsource Your Corporate Tax Responsibilities
By outsourcing your corporate tax needs to VAT Registration UAE, you save valuable time and resources. Our dedicated consultants manage all tax-related tasks, allowing you to focus on growing your business. With our expertise, you can trust that your corporate tax obligations will be handled efficiently and professionally.
Partner with the Leading Corporate Tax Consultant in the UAE
When it comes to corporate tax services in the UAE, VAT Registration UAE stands out as a trusted and reliable partner. With our deep understanding of UAE tax laws, personalized approach, and commitment to excellence, we provide solutions tailored to your business needs.
Contact us today to discover how our corporate tax advisors can support your business. Let us help you navigate the complexities of corporate taxation, optimize your tax position, and ensure full compliance. Together, we will achieve your corporate tax goals efficiently and effectively.