Going through Corporate Tax Law may seem complex, but with AccountAbility, you’re on the right path. Whether you’re a mainland company or a free zone business, Corporate Tax Registration is MANDATORY for all businesses in the UAE.
Corporate Tax is a tax on the profit of businesses. It’s like a portion of a company’s earnings that goes to the government.
To align with international practices, enhance transparency, and support the UAE’s growth as a global business hub.
From June 1, 2023, for financial years starting on or after that date.
All UAE-incorporated businesses and foreign companies with a taxable presence in the UAE must pay Corporate Tax. Natural persons are taxed only if they’re involved in business activities.
Businesses are taxed at 0% on profits up to AED 375,000 and 9% on profits above AED 375,000.
Taxable income is calculated based on the accounting profits of the business, with adjustments for specific exempt income and non-deductible expenses. The tax year is generally the calendar year unless the business opts for a different financial year.
Trade license, company information such as address, number, and other necessary documents, proof of identification such as passport and Emirates ID, personal information, and other significant details.
Certain entities like government bodies, extractive businesses, and public benefit organizations are exempt from Corporate Tax.
Free zone businesses can benefit from a 0% tax rate on qualifying income if they meet all regulatory requirements.
Yes, mainland and Free Zone companies in the UAE are subject to Corporate Tax on their taxable income.
Businesses must register with the Federal Tax Authority (FTA), keep accurate financial records, and file an annual tax return.
Yes, losses can be carried forward to offset future taxable income.
There are penalties for non-compliance, which include fines for late registration, late filing, incorrect information, and non-payment of taxes due. Penalties can vary depending on the severity and nature of the non-compliance.
The registration process duration can vary as it takes a minimum of 20 days for the process to be completed but businesses are advised to register as soon as they are eligible to ensure compliance.
Businesses can register for Corporate Tax with the Federal Tax Authority by providing the necessary information and documentation.
Yes, corporate tax filing is different from corporate tax registration. Corporate Tax Registration is the process of enrolling a business with the Federal Tax Authority (FTA) to obtain a tax registration number (TRN) while Corporate Tax Filing involves submitting the required tax returns and related documents to the FTA by eligible businesses. This is an ongoing obligation that businesses must fulfill periodically, usually on an annual basis.
Depends on the Trade License issuance date. Each issuance date has a corresponding corporate tax deadline date provided by the FTA.
There is specific fine assigned for very violation. One of the penalties (for late registration) is 10,000 AED.
Businesses are required to register for corporate tax and file annual tax returns. The tax return must include financial statements and other relevant documents. The deadline for filing is nine months after the end of the relevant financial year.
It’s the net profit in financial statements, adjusting for specific items as per the law.
Businesses need to keep detailed records of their financial transactions, including income and expenses, for at least seven years.
The Tax Period is the financial year used for preparing statements, usually from January to December
They manage and collect Corporate Tax and other federal taxes.
They handle tax agreements and international information exchange, and issue regulations for Corporate Tax.
VAT is a tax on the consumption of goods and services, while Corporate Tax is a tax on the profit a business makes.
Yes, businesses need to register separately for VAT and Corporate Tax as they are different types of taxes.
Small Business Relief in the UAE is a tax relief initiative designed to support small businesses by reducing or exempting them from corporate tax, thereby fostering growth and sustainability.
Businesses that have an annual turnover of 3,000,000 AED or below qualify for Small Business Relief.
To apply for Small Business Relief, eligible businesses must make an election when they file for tax return.
The required documents generally include financial statements, proof of revenue, trade licenses, and other relevant business records.
Small Business Relief is available until December 31, 2026
Under the Small Business Relief initiative, eligible small businesses may benefit from a 0% corporate tax rate, effectively exempting them from corporate tax for the relief period.
Yes, there may be restrictions based on business size, revenue limits, and the nature of the business activities. Specific details are outlined in the FTA’s regulations and guidelines.
More information and assistance can be obtained from the FTA’s official website, licensed tax consultants, or legal advisors specializing in UAE corporate tax.
Our team offers initial consultations and advisory services on the corporate tax implications that helps businesses understand and comply with Corporate Tax regulations to maintain precise records and prepare for tax registration and filings. With over a decade of expertise, we offer accurate documents assessment and on-time application, avoiding any penalties and guaranteeing compliance.
If you have any questions or need further information, please book your free consultation with us at +971 50 6235061 or info@accountbility.ae.
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