MicroBiz CT Assist Package: Small Business Relief (SBR)
Growth Accelerator CT Package: Standard Tax Rates for Growing Businesses (Turnover above AED
3 Million)
QFZP Shield Pro Package: Qualifying Free Zone Person (QFZP) Status
AED 2,625
MicroBiz CT Assist Package: Small Business Relief (SBR)
AED 1,050
Growth Accelerator CT Package: Standard Tax Rates for Growing Businesses (Turnover above AED
3 Million)
AED 2,625
QFZP Shield Pro Package: Qualifying Free Zone Person (QFZP) Status
AED 4,725
Filing & Payment. Businesses must register with the Federal Tax Authority, file tax returns and pay any tax due within specified deadlines. The CT return must be submitted within 9 months of the end of the relevant tax period.
Rates mean little without context. Here are three Abu Dhabi-specific examples showing exactly how corporate tax is calculated for typical entities in this emirate.
Exempt person application via the FTA. Mandated activity carve outs differ from commercial activities.
NOTE. Failing even ONE of these conditions causes the whole income base (not only the non qualifying portion) to be taxed at the standard 9% rate. QFZP status needs ongoing monitoring, not a one time assessment.
| Violation | Penalty | Notes |
|---|---|---|
| Failure to register for Corporate Tax | AED 10,000 | Per instance. FTA notifies the deadline. |
| Late submission of CT return | AED 500 then AED 1,000 per month | First 12 months at AED 500. Thereafter AED 1,000. |
| Failure to maintain financial records | AED 10,000 then AED 20,000 | Records kept 7 years minimum. |
| Failure to submit audited financials | AED 50,000 | Applies to larger entities. |
| Incorrect CT return (no fraud) | AED 500 to AED 20,000 | Based on underpaid tax amount. |
| Tax evasion / fraudulent return | Up to 5× unpaid tax | Plus criminal referral. Personal liability possible. |
Yes. ADGM is a financial free zone. FSRA regulated qualifying activities (fund management, wealth management, reinsurance, treasury to related parties) sit on the FTA list. All six QFZP conditions must hold simultaneously.
Extractive activities sit under emirate level taxation, not the 9% federal CT. Government controlled entities can apply for exempt person status, but it requires formal FTA approval. Nothing is automatic.
Yes. 7% breaches the de minimis cap of 5% of revenue or AED 5M, whichever is lower. All income is then taxed at 9%. Restructuring the customer mix or splitting mainland sales into a separate entity is the typical fix.
Every QFZP must maintain audited financials each tax period. Most ADGM entities already audit for FSRA, so the incremental work is minimal.
Yes, via dual licence or a mainland branch. Mainland income is taxed at 9%. ADGM qualifying income stays at 0% if QFZP conditions hold. Substance and TP design must keep the streams clean.
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