Overview
The UAE Corporate Tax (CT) regime, introduced under Federal Decree-Law No. 47 of 2022, is now fully in force. With the first wave of tax returns due, businesses across the UAE must ensure they are registered, compliant, and filing accurately.
Who Is Subject to UAE Corporate Tax?
All juridical persons incorporated in the UAE — including mainland companies, free zone entities, and branches of foreign companies — are subject to Corporate Tax unless specifically exempt. Natural persons conducting business activities generating annual revenue exceeding AED 1 million are also taxable.
Standard rates:
- 0% on taxable income up to AED 375,000
- 9% on taxable income above AED 375,000
- 15% for large multinationals meeting Pillar Two thresholds (annual global revenue > EUR 750 million)
Free Zone Businesses
Qualifying Free Zone Persons (QFZPs) can benefit from a 0% preferential rate on qualifying income, provided they:
- Maintain adequate substance in the UAE
- Derive income from qualifying activities
- Do not elect to be subject to the standard CT regime
- Comply with transfer pricing rules
Failure to meet any condition results in the entity losing QFZP status for the entire tax period.
Registration Deadlines
All taxable persons must register with the Federal Tax Authority (FTA) and obtain a Tax Registration Number (TRN). Registration deadlines are based on the entity's licence issuance date. Penalties for late registration can reach AED 10,000.
Transfer Pricing
Transactions between related parties must be conducted at arm's length. Businesses with related-party transactions exceeding AED 40 million annually must submit a Disclosure Form. Those meeting the threshold for a Master File and Local File must maintain full transfer pricing documentation.
Key Compliance Steps
- Register with the FTA and obtain your CT TRN
- Determine your tax period (financial year)
- Identify exempt income and qualifying deductions
- Prepare transfer pricing documentation if applicable
- File your CT return within 9 months of the end of your tax period
- Pay any tax due by the filing deadline
How MAK Advisory Group Can Help
Our UAE tax team provides end-to-end Corporate Tax compliance services — from registration and structuring advice to return preparation and FTA audit support. Contact us today for a free consultation.