What is Corporate Tax?

Corporate Tax (CT) is a direct tax imposed on the net profit of businesses operating in the UAE. Introduced by the Federal Tax Authority (FTA), the UAE Corporate Tax law ensures compliance with international tax standards while maintaining a business-friendly environment.

Who is Subject to Corporate Tax?

UAE Mainland companies
Free zone businesses (subject to qualifying income conditions)
Foreign entities earning income from the UAE
Freelancers & sole proprietors (if taxable income exceeds AED 375,000)

Corporate Tax Rates

0% – For taxable income up to AED 375,000
9% – For taxable income exceeding AED 375,000
0% or 9% – For free zone companies, based on Qualifying Free Zone Person (QFZP) status

Small Business Relief (SBR)

The UAE offers Small Business Relief (SBR) to ease the tax burden on small businesses.

Eligibility Criteria:

• Businesses with revenue below AED 3 million per year
• Applies to tax periods from June 2023 to December 2026
• Not available for multinational groups or free zone companies

Benefits of SBR:

• No corporate tax due if revenue is below AED 3 million
• Simplified tax compliance with reduced reporting requirements

Corporate Tax Compliance & Filing

Step 1: Corporate Tax Registration

• Businesses must register with the FTA via the EmaraTax portal.
• Obtain a Corporate Tax Registration Number (TRN).

Step 2: Maintain Financial Records

• Keep accurate profit & loss statements, balance sheets, and supporting records.
• Financial statements should comply with UAE tax laws.

Step 3: File Corporate Tax Returns

• Corporate Tax Returns (CTR) must be filed within 9 months after the end of the financial year.
• Tax payments must be made before the deadline to avoid penalties.

Step 4: Apply for Corporate Tax Deregistration (if applicable)

• Businesses that close, liquidate, or are exempt from CT must apply for deregistration within 3 months.

Why Choose Go Accounting LLC for Corporate Tax Services?

End-to-End CT Solutions – Registration, filing, and compliance support.
FTA-Compliant Tax Filings – Avoid penalties and ensure smooth tax reporting.
Tax Optimization & Advisory – Legally minimize tax liabilities.