Corporate Tax Services

Focus on What You Do Best – Leave UAE Corporate Tax to Us

On January 31, 2022, the UAE unveiled a transformative change in its tax structure by introducing a new corporate tax, marking a significant shift in the country’s fiscal landscape. Traditionally, the UAE had earned a reputation for its tax-friendly environment, with no corporate tax on profits for most industries. However, as of June 1, 2023, a 9% corporate tax rate is now applicable to a wide range of companies operating within the UAE.

We handle all aspects of corporate tax filing and management, allowing you to stay focused on what truly matters – your business. Trust us to navigate the complexities of Dubai’s corporate tax so you don’t have to.

UAE Corporate Tax Eligibility Overview

In 2023, the UAE implemented a 9% corporate tax rate on profits exceeding AED 375,000 (roughly USD $100,000). Businesses with earnings below this threshold will continue to benefit from a 0% tax rate, creating an attractive landscape for businesses to grow and thrive.

Exemptions from Corporate Tax

Certain income types are exempt from corporate tax in the UAE, such as earnings from government-owned entities, non-profit organizations (under specific conditions), and particular investment funds, ensuring key sectors remain tax-free.

Personal Income and Corporate Tax

Corporate tax does not apply to personal income unrelated to business activities in the UAE. This includes salaries, real estate income, and investment earnings, making the UAE an attractive destination for individuals and businesses alike.

Capital gains and dividends

Capital gains or dividends earned by individuals or businesses from qualifying shareholdings are exempt 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 a financial year beginning in January will not be required to pay tax on revenues generated prior to January 1, 2024.

Our Corporate Tax Services

At WeSetupBusiness, we offer complete corporate tax services, from detailed advisory to registration, compliance, filing, and submitting tax returns. Our team of professional accountants and tax experts, with years of local regulatory knowledge, handles all aspects such as assessment, compliance, audit, registration, accounting, and filing, so you don't have to worry about the heavy lifting. Rest assured, 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 does not register voluntarily, the FTA has the authority to register it automatically.

If a business stops its CT registration (e.g., during liquidation), the FTA must 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. Failure to submit a deregistration application on time or meet filing and payment obligations may lead to issues.

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 is no requirement to file a provisional CT return or make advance payments. All tax returns and supporting schedules must be submitted to 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 available to provide guidance on corporate tax matters that may affect your business. This includes information on potential tax exemptions and how to take advantage of them.

Corporate Tax Registration

Our team will assist you in registering 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 income and expenses.
Allow the FTA to review 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 with a proactive approach to ensuring compliance with your tax obligations:

Examine your financial records to identify taxable income.
Discover any deductions you may qualify for.
Register for corporate tax with the FTA.
Set up a system for filing your annual tax return and making necessary tax payments.