Corporate Tax

The leading corporate tax consultants in Abu Dhabi, UAE can help companies on the mainland or in the Freezone determine whether they are subjected to tax. Apart from that, they can help businesses to prepare the necessary financial records and documents, understand how free zone companies are taxed, comprehend the tax rates, and understand how to treat related party and connected person transactions, withholding tax, and allowable expenses.

Understanding the corporate tax regulations in the UAE will help organisations ensure compliance and avoid any fines and penalties. Compliance with UAE corporate tax laws will also assist businesses to avoid hefty fines and preserve their credibility, shareholders' confidence, and openness.

Companies that comply with UAE corporate taxes not only help you prevent penalties but are also more likely to maintain their reputation, trust, and transparency among their other shareholders and investors.

An Introduction to Corporate Tax in the UAE

Corporate tax is a type of tax that business must pay on the profit they make. It is introduced by the UAE government to help support the country’s growth and follow international tax rules. This tax applies to companies that earn money by doing business in the UAE. After subtracting busines expenses, the remaining profit is taxed. Companies need to report their earnings and pay this tax to the Federal Tax Authority(FTA)

Who is Subject to Corporate Tax in Abu Dhabi?

The following entities are subject to the UAE Corporate Tax law:

Mainland Businesses

Any business or individual holding a commercial license in Abu Dhabi

Free Zone Companies

Eligible under specific conditions, especially if conducting business with the mainland

Exempt Entities

Includes government entities, public benefit organizations, and certain natural resource businesses

Entities Exempted From Corporate Services Tax in Abu Dhabi

If a company is unsure about Corporate Tax Exemptions, it can consult with corporate tax advisors in the UAE. The following individuals are exempt from company taxation in the UAE:

*Firms in the UAE that are fully owned by the government, carry out a mandated or sovereign activity, and are included in a Cabinet Decision

*UAE Federal Government and the Governments of the Emirates, as well as their agencies, governing bodies, and public organisations

*Public and regulated private retirement and social security funds

*Companies that collect and use natural resources in the United Arab Emirates that are subject to Emirate-level taxation

*Public benefit organisations and charities included in a Cabinet Decision

Understanding Corporate Tax Rates

The UAE corporate tax regime offers one of the most competitive tax structures globally:

* 0% corporate tax on annual taxable income up to AED 375,000

* 9% corporate tax on taxable income exceeding AED 375,000

This system ensures that small businesses are supported, while larger entities contribute to the nation’s development.

Why Corporate Tax Compliance Matters?

* It ensures timely and accurate filings to prevent administrative sanctions. So it helps to avoid Costly Penalties & Interest

* Builds investor and customer trust by showing transparency and financial reliability to stakeholders.

* Creates Growth Opportunities by maintaining eligibility for expansion, partnerships, and fundings

* Improve Strategic Financial Planning and optimize your profits by identifying tax-saving opportunities legally.

Our Corporate Tax Services Abu Dhabi

*Corporate Tax Registration

Complete guidance and support during registration on Emaratax

*Corporate Tax Return Filing

Accurate and timely tax return submissions

*Corporate Tax Audit

Internal checks to ensure compliance and reduce audit risks

*Corporate Tax Assessment

Evaluate your tax position and identify savings

*Free Zone Corporate Tax Advice

Specialized services for Free Zone companies based on applicable conditions

*Corporate Tax Accounting

Bookkeeping and tax ready financial reports

Corporate Tax

Corporate Tax Registration

As a part of the corporate tax registration process in the UAE, companies that are subject to the tax will be required to apply with the Fedaral Tax Authority(FTA) for registration as corporate taxpayers. Additionally, they must get a tax registration number within a certain period. Whenever a company ceases to be subject to corporate tax, it must apply to the UAE for the deregistration of the corporation. In order to apply, the cessation or liquidation must have taken place within three months. Businesses could get help from corporate tax advisors in Dubai with tax registration and deregistration.

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How to Register for Corporate Tax in Abu Dhabi, UAE?

Step 1: Register on Emaratax Create an account using your email ID and phone number.

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Step 2: Create/Select Taxable Person Choose the relevant business entity (natural or legal person).

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Step 3: Complete Registration Fill in the corporate tax application and submit the required documents.

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Corporate Tax Return

A company is only required to complete and submit one UAE corporate tax return, including any necessary supporting schedules, to the FTA for each tax period. Businesses won’t need to submit a provisional Corporate Tax Return or pay their corporate tax in advance in the UAE. For further information on administrative needs, consult with Corporate tax advisers in the UAE.

Genuine Tax offers services such as corporate tax registration with the FTA, tax return filing, calculating corporate taxable income, tax registration number deregistration, tax assessment, and tax advisory. Our highly skilled chartered accountants and tax advisors can assist businesses in ensuring tax compliance.

 

Simplifying Corporate Tax for Abu Dhabi Businesses

At GAAP Audit, we make corporate tax services in Abu Dhabi easy to understand and manage for businesses in Abu Dhabi, UAE

With decades of expert knowledge in the UAE’s tax system, our team ensures your business stays compliant and up to date. As an FTA approved tax agents in Abu Dhabi, we follow all legal requirements and deliver reliable support every step of the way.

Whether you’re a small business, a Free Zone company, or a large corporation, we offer customized tax solutions that match your needs. From initial consultation to filing and follow-ups, our end-to-end support gives you peace of mind, so you can focus on growing your business while we handle your tax matters.

Need Help? We Are Here To Help You

The rules for financial reporting are called accounting standards. These regulations make it very clear how the transactions must be recorded.

FAQ

The opportunity to work abroad is a popular prospect, one

CT is a form of direct tax levied on the net income or profit of corporations and other businesses. CT is sometimes also referred to as “Corporate Income Tax” or “Business Profits Tax” in other jurisdictions.

A competitive CT regime based on international best practices is expected to cement the UAE’s position as a leading global hub for business and investment and accelerate the UAE’s development and transformation to achieve its strategic objectives. Introducing a CT regime also reaffirms the UAE’s commitment to meeting international standards for tax transparency and preventing harmful tax practices.

Corporate Tax will be levied at a headline rate of 9% on Taxable Income exceeding AED 375,000. Taxable Income below this threshold will be subject to a 0% rate of Corporate Tax

The UAE CT regime will become effective for financial years starting on or after 1 June 2023. Examples:
● A business that has a financial year starting on 1 July 2023 and ending on 30 June 2024 will become subject to UAE CT from 1 July 2023 (which is the beginning of the first financial year that starts on or after 1 June 2023)
● A business that has a financial year starting on 1 January 2023 and ending on 31 December 2023 will become subject to UAE CT from 1 January 2024 (which is the beginning of the first financial year that starts on or after 1 June 2023)

UAE CT applies to juridical persons incorporated in the UAE and juridical persons effectively managed and controlled in the UAE, as well as to foreign juridical persons that have a permanent establishment (see section Foreign persons) in the UAE (see question ‘Who is considered a resident for UAE CT purposes?’ under section Scope and rate). Individuals will be subject to CT only if they are engaged in a business or business activity in the UAE, either directly or through an unincorporated partnership or sole proprietorship. A Cabinet Decision will be issued in due course specifying further information on what would bring a natural person within the scope of UAE CT.

Yes – the UAE CT does not differentiate between nationality or residence. Juridical persons that are incorporated or resident in the UAE, or that have a permanent establishment in the UAE, will be subject to UAE CT. This applies irrespective of the residence and nationality of the individual founders or (ultimate) owners of the entity.

Yes. The UAE CT is a Federal tax and will therefore apply across all the Emirates.

Businesses engaged in the extraction of the UAE’s natural resources and in certain non-extractive activities that are subject to Emirate-level taxation will be outside the scope of UAE CT, subject to meeting certain conditions. Other businesses may be subject to both CT and Emirate-level taxation. Emirate-level taxes paid will not be able to be credited against or otherwise reduce the amount of CT payable.

No, CT and VAT are two different types of taxes. Both will continue to apply in the UAE.

If you are a registered business for VAT, you will have to pay VAT and CT separately. If your business is not VAT registered you may still have to pay CT.

In-force International agreements (including international agreements for the avoidance of double taxation) to which the UAE is a party should be considered under the UAE CT regime. In case of a conflict between the Corporate Tax Law and an international agreement with respect to the right to tax a certain item of income, the relevant international agreement may limit the application of UAE CT.

No, CT and Excise Tax are two different types of taxes. Both will continue to apply in the UAE.

To assess what the UAE CT regime means for your business, as a starting point, you should:
1. Read the Corporate Tax Law and the supporting information available on the websites of the Ministry of Finance and the Federal Tax Authority.
2. Use the available information to determine whether your business will be subject to UAE CT and if so, from what date.
3. Understand the requirements for your business under the Corporate Tax Law, including, for example:
a. Whether your business needs to register for UAE CT.
b. What is the accounting / Tax Period for your business?
c. By when your business would need to file a UAE CT return?
d. What elections or applications can or should your business make for UAE CT purposes?
e. How UAE CT may impact your business’ obligations and liabilities under contracts with customers and suppliers.
f. What financial information and records your business will need to keep for UAE CT purposes?
4. Regularly check the websites of the Ministry of Finance and the Federal Tax Authority for further information and guidance on the UAE CT regime.

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