We take care of all corporate tax filing & management activities while you concentrate on what you do best. Leave Dubai Corporate Tax to us!

On 31st January 2022, the UAE has introduced a new corporate tax, signaling a significant change in its taxation landscape. Historically, the United Arab Emirates was known for not imposing taxes on corporate profits, except for a few industries. However, starting from the financial year that began on June 1, 2023, many companies operating in the UAE will be subject to a new 9% corporate tax rate.

Eligibility of UAE Corporate Tax

The UAE's corporate tax for 2023 is set at 9% on the profits (which is the revenue minus expenses) of businesses generating over 375,000 AED (approximately USD $100,000). Companies with annual earnings below this threshold will continue to enjoy a 0% tax rate.

Who are exempted from Corporate Tax?

There are few types of income that are exempted from corporate tax. These include:

Wholly government-owned entities, non-profit organizations (terms and conditions apply), specific types of investment finds.

Personal Income

Corporate tax does not apply to personal income generated by the individuals that is not associated with any trade or business in the UAE. These incomes include salary from employment, real estate, share investment, income from interest, and other personal income sources.

Free Zone Businesses

Businesses registered in free zones can enjoy 0% corporate tax if they do not engage in business with mainland and comply with all the regulatory criteria set by the authorities.

Capital gains and dividends

Capital gains or dividends earned by the individuals or businesses from qualifying shareholdings are exempted from UAE corporate tax.

Effective Date

The new corporate tax policy came into effect for the tax year starting on June 1, 2023. Companies with financial year beginning in January will not be required to pay tax on revenues generated prior to January 1, 2024.

At WeSetupBusiness, we offer complete corporate tax services from detailed advisory to registration, remaining compliant, filing, and submitting tax returns. Our team of professional accountants and tax experts with years of local rules and regulations knowledge handle all the aspects such as assessment, compliance, audit, registration, accounting, and filing so you don't have to do the heavy lifting. You can rest assure that your tax requirements are in safe hands.

Registration and Deregistration

Businesses that fall under the corporate tax (CT) requirements must register with the Federal Tax Authority (FTA) and obtain a Tax Registration Number within the specified time frame. If a company doesn’t register voluntarily, the FTA has the authority to register it automatically.

If a business stops its CT registration (for instance, during liquidation), the FTA should be notified within three months. For an individual to be deregistered, they must have submitted all CT returns and paid any owed taxes and penalties up until the cessation. If the deregistration application is not submitted on time or if payment and filing obligations aren’t met, issues may arise.

Filing, Payment, and Refunds

Businesses need to submit only one tax return and the necessary supporting documents to the FTA for each tax period. There’s no requirement to file a provisional CT return or make advance payments. All tax returns and supporting schedules must reach the FTA within nine months after the end of the tax period. Payments for corporate tax must be completed within nine months following the tax period. Taxpayers may request a refund from the FTA if they can prove it’s warranted.

Corporate Tax Advice

Our specialists are here to provide guidance on corporate tax matters that could affect your business. This includes information on potential tax exemptions available to you and how to take advantage of them.

Corporate Tax Registration

Our team will help you register your business for corporate tax with the FTA and ensure that you meet all deadlines related to your tax obligations.

Corporate Tax Returns

We will evaluate your corporate tax situation, aiming for the most favorable tax results for your business, and manage all necessary submissions to the FTA throughout the year.

Compliance Obligations for Corporate Taxpayers in the UAE

To comply with UAE corporate tax regulations, businesses must fulfill the following essential duties:

·       Register for corporate tax with the FTA.

·       Submit an annual tax return and settle any taxes owed within nine months after the end of the taxable year.

·       Maintain thorough records of their income and expenses.

·       Allow the FTA to review their records if requested.

How to Prepare for Corporate Tax?

If you’re a business owner looking to prepare for corporate tax, our qualified tax advisors can assist you in ensuring compliance with your tax obligations through a proactive approach:

·       Examine your financial records to identify your taxable income.

·       Discover any deductions that you may qualify for.

·       Register for corporate tax with the FTA.

·       Setup a system for filing your annual tax return and making any necessary tax payments.