Understanding UAE Corporate Tax
The UAE introduced a federal corporate tax effective from June 1, 2023, marking a significant shift in the country's tax landscape. This guide covers everything businesses need to know.
Tax Rates
- 0% on taxable income up to AED 375,000
- 9% on taxable income exceeding AED 375,000
- 15% for large multinationals (Pillar Two)
Who Must Register?
All UAE businesses, including free zone companies, must register for corporate tax with the Federal Tax Authority (FTA). This includes mainland companies, free zone entities, and branches of foreign companies.
Key Deadlines
Tax returns must be filed within 9 months from the end of the relevant tax period. Late filing can result in penalties starting from AED 500.
Exemptions
Certain entities may qualify for exemptions, including government entities, qualifying public benefit organizations, and qualifying free zone persons meeting specific conditions.
How Al Masar Can Help
Our expert team can assist with corporate tax registration, return preparation and filing, tax planning, and ensuring full compliance with FTA regulations.