FTA announces Corporate Tax Registration Deadline. AED 10k penalty for late registration.
Corporate Tax UAE
As the UAE continues its transformation into a diversified economy, corporate tax UAE regulations are becoming a key part of this journey. Introduced in alignment with global fiscal practices, corporate tax in the UAE ensures financial accountability, attracts international investments, and supports national development.
Simplifying Corporate Tax in the UAE for Businesses of All Sizes
Navigating corporate tax in the UAE can be complex, but with the right support, you can ensure compliance while focusing on growing your business. At Wealth Edge Taxation and Accounting, we specialize in guiding businesses through every step of their corporate tax journey—ensuring clarity, compliance, and confidence.
What is Corporate Tax in the UAE?
The UAE introduced a federal corporate tax system to align with international standards and promote transparency. As of 2023, businesses exceeding the income threshold must register and comply with corporate tax regulations, including periodic filing and maintaining proper documentation.
FAQs
Corporate Tax applies to the following entities:
- UAE Companies and Juridical Persons: Including those incorporated or effectively managed and controlled within the UAE.
- Natural Persons (Individuals): Engaged in business or business activities within the UAE, as specified by Cabinet Decision.
- Non-Resident Juridical Persons: Foreign legal entities with a Permanent Establishment in the UAE.
- Juridical Persons in UAE Free Zones: Subject to Corporate Tax but may qualify for a 0% tax rate under certain conditions.
- Non-resident persons without a Permanent Establishment in the UAE may be subject to Withholding Tax (at 0%) on UAE-sourced income, collected at the source by the payer.
- Natural Persons and Juridical Persons:
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- 0% for Taxable Income up to AED 375,000.
- 9% for Taxable Income exceeding AED 375,000.
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- Qualifying Free Zone Persons:
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- 0% on Qualifying Income.
- 9% on Taxable Income that is not Qualifying Income.
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Individuals will be subject to UAE Corporate Tax if their annual turnover from a ‘Business’ or ‘Business Activity’ in the UAE exceeds AED 1 million.
Yes, UAE holding companies are subject to UAE Corporate Tax. However, dividends from domestic shareholdings are exempt without condition, and dividends from foreign shareholdings, as well as capital gains from both domestic and foreign shareholdings, are exempt, provided they meet the conditions of the Participation Exemption
For Tax Periods ending on or before December 31, 2026, UAE Resident Persons with revenue of AED 3 million or less in the current and previous Tax Periods can claim Small Business Relief. This includes natural persons and legal entities that are not part of a Multinational Enterprise Group operating in multiple countries with total consolidated group revenue exceeding AED 3.15 billion, or Qualifying Free Zone Persons. If the revenue of an eligible entity exceeds AED 3 million in any Tax Period, they are no longer eligible for Small Business Relief for that period and subsequent periods.
Our Corporate Tax Services in UAE Include:
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Local Expertise: In-depth knowledge of UAE tax laws and updates
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Tailored Solutions: Tax plans customized to your business structure and industry
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Transparent Pricing: No hidden fees, clear and fair pricing
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Full-Service Support: From initial registration to annual filing and beyond
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Trusted Professionals: A team of certified accountants and tax consultants
Who Needs to Register for Corporate Tax in the UAE?
If your business is incorporated in the UAE or earns income above the tax threshold, you’re required to register for corporate tax. This includes:
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LLCs and Free Zone companies
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Foreign businesses operating in the UAE
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Branches of international companies
Wealth Edge helps you determine your tax obligations and manage the entire compliance process with minimal hassle.
Stay Compliant, Avoid Penalties
Failing to register or file your corporate tax correctly can lead to heavy penalties in the UAE. With Wealth Edge, you get proactive tax planning, timely filing, and expert handling of all corporate tax requirements to ensure full compliance.
We’re here to help! Feel free to reach out if you have any questions, feedback, or need more details.