The UAE has long been recognized as a tax-friendly business hub, but recent reforms have introduced Corporate Tax to align with global standards. Effective from June 1, 2023, the UAE Corporate Tax regime imposes a standard rate of 9% on taxable profits exceeding AED 375,000. As an FTA-approved tax agency, Corcess Consulting provides expert guidance to ensure your business remains compliant while optimizing tax efficiency.

Understanding UAE Corporate Tax

Corporate Tax in the UAE applies to both mainland and free zone businesses, with certain exemptions for qualifying Free Zone Persons. The tax framework is designed to maintain the UAE’s competitive edge while ensuring transparency. Businesses must assess their tax liabilities based on accounting net profits, adjusted as per tax regulations.

Who is Subject to Corporate Tax?

All UAE-based companies and foreign entities with a Permanent Establishment (PE) in the UAE are subject to Corporate Tax. However, small businesses with revenues below AED 3 million may benefit from relief schemes. Free zone businesses can enjoy a 0% tax rate if they meet specific conditions under the Qualifying Free Zone Person (QFZP) status.

Exemptions and Deductions

Certain entities, such as government bodies, NGOs, and extractive businesses, are exempt from Corporate Tax. Additionally, dividends and capital gains from qualifying shareholdings may be excluded from taxable income. Proper documentation and compliance are crucial to availing these benefits—Corcess Consulting helps businesses navigate these exemptions seamlessly.

Transfer Pricing Regulations

The UAE has introduced Transfer Pricing (TP) rules based on OECD guidelines, requiring businesses to maintain proper documentation for related-party transactions. Compliance with Arm’s Length Principle (ALP) is mandatory to avoid penalties. Our team ensures your TP policies align with FTA requirements, minimizing audit risks.

Tax Grouping Provisions

Businesses with 75% or more common ownership can form a Tax Group, allowing consolidated tax filings. This simplifies compliance and optimizes tax liabilities. However, strict eligibility criteria apply, and our experts at Corcess Consulting can assist in structuring your group efficiently.

Impact on Free Zones

While Free Zones continue to offer 0% tax on qualifying income, non-qualifying revenue is subject to the standard 9% rate. Businesses must carefully assess their activities to maintain tax benefits. Our tailored advisory services help free zone entities stay compliant while maximizing incentives.

Compliance and Deadlines

Companies must register for Corporate Tax and file annual returns within 9 months from the financial year-end. Late submissions attract penalties, making timely compliance essential.

Why Corcess Consulting is Your Trusted Corporate Tax Partner?

As a Federal Tax Authority (FTA)-Approved Tax Agency, we offer unparalleled expertise in UAE Corporate Tax compliance and advisory services. Our authorization by the FTA demonstrates our commitment to excellence and ensures your business receives:

Regulatory Expertise & Compliance Assurance:

  • Official FTA-approved tax agency status
  • Up-to-date knowledge of evolving tax regulations
  • Guaranteed compliance with all filing requirements

Specialized Free Zone Tax Knowledge:

  • Expert guidance on maintaining 0% tax status for QFZPs
  • Comprehensive analysis of qualifying vs. non-qualifying income
  • Strategic planning to optimize free zone tax benefits

Comprehensive Tax Lifecycle Management:

  • End-to-end solutions from registration to annual filings
  • Precise tax calculations and return preparation
  • Audit support and dispute resolution services

Strategic Tax Optimization:

  • Proactive planning to minimize tax liabilities
  • Customized solutions tailored to your business structure
  • Continuous monitoring of regulatory changes

Our FTA-Registered Tax Agents combine technical expertise with practical business understanding to deliver tax solutions that are both compliant and commercially strategic. With Corcess Consulting, you gain more than a service provider – you secure a strategic partner dedicated to protecting your business interests while maximizing tax efficiency in the UAE’s evolving fiscal landscape.

📞 Contact our Corporate Tax experts to safeguard your business’s financial position!

Approved by the Federal Tax Authority (FTA) | Specialists in Corporate Tax Compliance & Advisory