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UAE Corporate Tax Compliance Guide

Everything you need to know about the 9% corporate tax, thresholds, exemptions, and filing deadlines.

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30+ pages covering all aspects of UAE corporate tax compliance, deadlines, and strategies.

1What is UAE Corporate Tax?

The UAE introduced corporate tax under Federal Decree-Law No. 47 of 2022, effective from June 1, 2023. The standard rate is 9% on taxable income exceeding AED 375,000.

  • 0% on taxable income up to AED 375,000
  • 9% on taxable income exceeding AED 375,000
  • 0% for qualifying Free Zone income

2Who Must Register?

Must Register

  • • UAE resident companies
  • • Branches of foreign companies
  • • Free Zone companies
  • • Natural persons with business income > AED 1M
  • • Non-residents with UAE permanent establishment

Generally Exempt

  • • Government entities
  • • Pension funds
  • • Qualifying public benefit entities
  • • Employment income
  • • Personal investment income

3Key Deadlines

DeadlineRequirementPenalty
RegistrationWithin 3 months of first tax periodAED 10,000 - 50,000
Tax ReturnWithin 9 months of tax period endAED 5,000 - 20,000
PaymentWith tax return submission4% per month
RecordsMaintain for 7 yearsAED 10,000 - 20,000

4Free Zone Benefits

Free Zone companies can benefit from 0% corporate tax on qualifying income if they meet specific conditions:

Substance

Adequate presence and employees in the Free Zone

Qualifying Income

Income from transactions with other Free Zone entities

Compliance

No election to be subject to standard CT rate

5Small Business Relief

Businesses with revenue below AED 3 million may elect for Small Business Relief, treating their taxable income as zero for the relevant tax period.

Note: This relief is available for tax periods starting on or before December 31, 2026. Even with relief, registration and filing requirements still apply.

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