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Corporate Tax in UAE – Your Complete Guide to Compliance and Registration
The United Arab Emirates (UAE), once considered a tax-free haven, has introduced corporate tax to align with international standards and ensure sustainable economic development. With the implementation of a 9% corporate tax on business profits exceeding AED 375,000, companies must now focus on compliance, planning, and efficient registration processes. This guide provides a complete overview of corporate tax in the UAE, who it applies to, and how Silver Oak Documents Clearing Services LLC can help businesses register and manage their tax obligations with ease.
What is Corporate Tax in the UAE?
Corporate tax is a direct tax imposed on the net profit of businesses. In the UAE, corporate tax was officially introduced in June 2023 and applies to most business activities across all emirates. The move marks a significant shift in the UAE fiscal policy, as the country adapts to global tax transparency standards and aims to diversify its economy.
The introduction of corporate tax applies to:
- The introduction of corporate tax applies to:
- All UAE-based businesses earning taxable profits
- Branches of foreign companies operating in the UAE
- Freelancers and sole proprietors who exceed the taxable threshold
Key Features of the UAE Corporate Tax Law
The VAT registration process involves several steps:
Tax Rate Structure
- Standard Rate: 9% on annual taxable profits exceeding AED 375,000.
- Zero Rate: 0% on profits up to AED 375,000 to support startups and small businesses.
Who Needs to Register?
- All UAE-registered companies and foreign entities conducting business in the UAE.
- Free zone companies that do not meet the qualifying conditions for tax exemption.
- Branches of foreign companies operating onshore in the UAE.
Eligibility for Corporate Tax
- Exemptions Some entities are exempt from corporate tax, including:
- Government entities and their wholly owned subsidiaries
- Public benefit organizations
- Investment funds (subject to FTA approval)
- Companies involved in natural resource extraction (already taxed at the Emirate level)
Filing and Compliance
Registered businesses are required to file annual tax returns detailing their profits and tax liabilities. Timely submission is essential to avoid penalties and maintain compliance with UAE tax laws.
Corporate Tax Registration Process in the UAE
Step 1 – Prepare for Registration Before starting the registration process, businesses should:
- Review their total annual revenue and profit.
- Understand whether they fall under mandatory or voluntary registration.
- Collect the necessary documents.
Required Documents:
- Valid trade license
- Emirates ID and passport copy of shareholders
- Memorandum of Association (MOA)
- Proof of registered address
- Details of business activities
- Bank account statements and financial reports
Step 2 – Register Through the FTA Portal Companies must register through the Federal Tax Authority (FTA) e-Services Portal:
- Create an account or log in with your existing credentials.
- Submit your business and financial information.
- Upload the required documents.
- Obtain a Tax Registration Number (TRN).
Step 3 – Compliance After Registration After successful registration, businesses must:
- File annual corporate tax returns.
- Maintain accounting records for at least 7 years.
- Comply with transfer pricing and economic substance regulations (if applicable).
- Set aside tax payments based on annual profit calculations.
Role of the Federal Tax Authority (FTA)
Role of the Federal Tax Authority (FTA) The FTA oversees the implementation, management, and enforcement of corporate tax laws in the UAE. It ensures transparency, fairness, and compliance with international tax practices. Businesses can use the FTA portal for registration, filing returns, and staying updated on new policies.
Why Corporate Tax Compliance Matters
Why Corporate Tax Compliance Matters
Avoid Penalties
Avoid Penalties Non-compliance with corporate tax regulations can result in heavy fines, penalties, and even legal consequences. Timely registration and filing ensure businesses avoid such risks.
Build Trust and Credibility
Build Trust and Credibility Being compliant enhances your company’s reputation. It shows potential partners, investors, and customers that you operate within the legal framework.
Access to International Markets
Access to International Markets Global investors often prefer dealing with businesses that follow internationally recognized tax laws. UAE businesses with proper tax records can confidently expand globally.
Filing Corporate Tax Returns in the UAE
Filing Corporate Tax Returns in the UAE, all taxable businesses must file annual tax returns through the FTA portal. The deadline is within 9 months after the end of the financial year. For example, if your financial year ends on December 31, your return must be filed by September 30 of the following year.
Returns must include:
- Audited financial statements
- Profit and loss summary
- Deductions and tax credits
- Details of related party transactions (if applicable)
Corporate Tax Rates and Their Implications
Standard Corporate Tax Rate
9% flat rate for taxable income above AED 375,000.
Free Zone Companies
- Eligible free zone companies can enjoy 0% corporate tax provided they:
- Earn only qualifying income (e.g., transactions with businesses outside the UAE).
- Do not conduct business in the UAE mainland.
Corporate Tax Deadlines in the UAE
Tax deadlines are based on your company’s financial year. Businesses are advised to:
- Maintain regular records of financial transactions.
- Consult tax professionals to prepare for year-end submissions.
- Avoid late filings to escape penalties.
Penalty for Late Filing: AED 10,000 (initially) and AED 20,000 for repeated offenses.
How Silver Oak Documents Clearing Services LLC Can Help
Silver Oak is an official corporate tax agent in the UAE, helping over 10,000 clients successfully register and comply with corporate tax laws.
Our Services Include:
- Corporate Tax Registration: End-to-end registration support through the FTA portal.
- Document Preparation: Accurate collection and formatting of all necessary documents.
- Compliance Management: Assistance in tax planning, filing, and ongoing support.
- FTA Liaison: Acting as your representative in dealings with the tax authority.
- Tax Consultation: Professional advice tailored to your industry, size, and goals.
Get Started Today: AED 499 (Includes Government Fees)
Benefits of Choosing Us:
- Affordable corporate tax registration starting from AED 499 (inclusive of government fees).
- Transparent pricing with no hidden costs.
- Quick turnaround time with a dedicated support team.
- In-depth knowledge of both free zone and mainland regulations.
Related Services We Offer
In addition to corporate tax registration, we also provide:
Start Your Corporate Tax Registration Today
Call us: 0507580404
Email: info@silveroakbiz.com
Silver Oak Documents Clearing Services LLC is your trusted corporate tax partner in the United Arab Emirates. Get expert support to register, comply, and thrive in the UAE evolving tax landscape. Let us simplify the process for you, so you can focus on growing your business.
Do you have any question? Find answer here
What is corporate tax in the UAE?
Corporate tax is a 9% tax applied to the net profits of businesses operating in the UAE above AED 375,000.
Who must register for corporate tax?
All businesses with annual profits exceeding AED 375,000, including foreign entities operating in the UAE, must register.
Are free zone companies subject to corporate tax?
They may be exempt if they meet qualifying conditions and only conduct permitted business activities.
How long does corporate tax registration take?
With complete documentation, registration typically takes 3–5 business days.
What if I don’t register for corporate tax?
Non-compliance can result in administrative penalties, fines, and suspension of business licenses.
What is a Tax Identification Number (TIN)?
A TIN is a unique number issued by the FTA for each registered business. It must be included on all tax filings.
