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UAE Corporate Tax: A Simple Guide What is it?
A new tax on business profits in the UAE.
Aligns the UAE with global tax standards while keeping it competitive.
Aims to support economic growth and attract investment.
Who pays it?
Companies incorporated in the UAE.Foreign companies managed and controlled in the UAE.Individuals running a business in the UAE.Foreign companies with a significant presence (“permanent establishment”) in the UAE.
How much is it?
0% on profits below AED 375,000 (good for small businesses and startups!).9% on profits above AED 375,000.
What is taxed?
Your business profits (what’s left after expenses).
Calculated based on your accounting records with some adjustments.
What is NOT taxed?
Dividends (payments from your investments).
Capital gains (profit from selling shares).
Can I reduce my tax bill?
Yes, by deducting business expenses (like rent, salaries, etc.).
Some expenses have limits (like entertainment).
Some expenses are not allowed (like bribes or fines).
Special cases:
Free zone companies: May qualify for 0% tax if they meet certain conditions.Tax groups: Companies can group together and be taxed as one.
What do I need to do?
Register for corporate tax with the Federal Tax Authority (FTA).File a tax return every year, even if you have no tax to pay.Keep good records of your income and expenses.
Deadlines:
The deadline for filing your tax return and paying any tax owed is December 31, 2024 , for businesses with a short first tax period.
Need more info?
Key takeaway: The UAE’s corporate tax is straightforward for most businesses. Understand the basics, keep good records, and meet your deadlines to stay compliant.
