BCL Globiz · UAE Corporate Tax
Corporate Tax Services in Dubai, UAE
DMCC traders. DIFC funds. Mainland Dubai LLCs and MNE subsidiaries. CT registration, QFZP and the annual return, handled end to end.
- 1000+ UAE Businesses Served
- Dedicated Manager Per Client
- Transparent Upfront Pricing
Tax Snapshot for Dubai
Federal Decree-Law No. 47 of 2022. Applicable from financial years starting on or after 1 June 2023.
0%
Up to AED 375K
9%
Above AED 375K
Clients
0
+
Industries Served
0
+
Years of Experience
0
+
Experts Globally
0
+
Truly Transparent Pricing! No Hidden Fees!
Corporate Tax Compliance
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 500
AED 1,000
AED 2,500
Truly Transperant Pricing! No Hidden Fees!
Corporate Tax Compliance
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
Quick take for Dubai
- DMCC, DIFC and Dubai Internet City entities can reach 0% through QFZP if substance, activity and audit hold.
- Mainland Dubai LLCs and SMEs sit on the standard 0% and 9% slab. Family groups need TP discipline.
- Most MNE subsidiaries in Dubai trigger Local File at AED 40M and Master File at AED 3.15B group revenue.
Dubai CT Landscape
Corporate Tax in Dubai at a glance
Dubai is the UAE commercial hub. CT planning here spans the broadest free zone mix in the country, plus mainland LLCs, family trading groups and a high concentration of MNE subsidiaries.
DMCC and qualifying commodities
Commodity traders need the FTA list check. On list trades reach 0% under QFZP. Off list items fall to 9%.
DIFC and financial services
Fund management, wealth management and treasury to related parties sit on the FTA qualifying list. DFSA audit infrastructure usually already exists.
Mainland Dubai
LLCs, family trading houses and professional services on the 0% and 9% slab. TP discipline is the recurring topic.
MNE subsidiaries
Distribution arms, regional HQs, IP and treasury entities. Master File, Local File and CbC reporting often apply.
Tax Rate
0
%
Up to AED 375,000
Small businesses, startups and sole proprietors. Zero liability on this slab.
Tax Rate
0
%
Exceeding AED 375,000
Mainland and free zone businesses. The standard UAE corporate tax rate.
Tax Rate
0
%
MNEs ≥ EUR 750M revenue
Large multinationals. OECD Pillar Two, effective from January 2025.
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.
Local Context
Dubai industry mix and CT impact
Broadest free zone mix
DMCC, DIFC, Dubai Internet City, Dubai South, IFZA, Meydan. Each has a different QFZP profile and customer mix.
TP intensity
Dubai has the highest density of MNE subsidiaries in the GCC. Local File at AED 40M aggregate. Master File at AED 3.15B group revenue.
Family group structuring
Multi entity ownership across mainland and free zones. Tax group election can flatten the AED 375K threshold across qualifying entities.
Worked Examples
Practical Tax Calculations for Dubai
Rates mean little without context. Here are three Dubai-specific examples showing exactly how corporate tax is calculated for typical entities in this emirate.
DMCC Commodity Trader (QFZP)
Qualifying commodity trading, AED 10M income
- Qualifying commodity trading income at 0%.
- De minimis check passed.
- QFZP elected.
Total Tax Liability
AED 0
DIFC Fund Manager (QFZP, mixed)
AED 8M total revenue, 4% non qualifying
- Qualifying fund management AED 7.68M at 0%.
- Non qualifying AED 320K at 9% equals AED 28,800.
- QFZP retained.
Total Tax Liability
AED 28,800
Mainland Dubai LLC
AED 1.5M net profit
- First AED 375K at 0%.
- Remaining AED 1,125,000 at 9% equals AED 101,250.
Total Tax Liability
AED 101,250
Planning Priorities
Corporate Tax Planning in Dubai
Each segment of Dubai’s economy pulls on a different part of the UAE corporate tax framework. These are the four planning priorities we work through with most Dubai clients.
01
DMCC and Commodity Traders
Confirm every commodity against the FTA qualifying list. Customer mix monitoring for de minimis.
02
DIFC Regulated Entities
Substance plus qualifying activity tests, with the DFSA prudential overlay. Audited financials are non negotiable.
03
Mainland LLCs and Family Groups
Standard 0% and 9% slab. Tax group election and TP documentation are the levers.
04
MNE Subsidiaries
Master File, Local File and CbC triggered by group thresholds. TP audit defence file maintained continuously.
What We Do
Comprehensive Corporate Tax Services in Dubai
End-to-end Corporate Tax solutions tailored for Dubai businesses.
✓
TRN registration on EmaraTax
For DMCC, DIFC, mainland and other Dubai free zone entities.
✓
DMCC and DIFC QFZP eligibility memo
Activity, substance and de minimis check.
✓
Mainland LLC and family group CT advisory
Tax group election analysis and inter entity TP.
✓
MNE subsidiary transfer pricing
Master File, Local File and CbC reporting coordination.
✓
CT return preparation for Dubai
Reconciled to audited financials.
✓
Ongoing advisory through the tax year
FTA correspondence and audit defence.
Free Zone
QFZP Requirements in UAE Free Zones
To qualify as a Qualifying Free Zone Person under UAE Corporate Tax law and benefit from the 0% rate on qualifying income, a Free Zone entity must meet ALL six conditions simultaneously.
01
Adequate Substance
Maintain sufficient employees, assets and operational expenses within the Free Zone.
02
Qualifying Income
Earn income primarily from qualifying activities. Keep non qualifying income within de minimis limits.
03
0% CT Election
Formally opt into the 0% regime instead of defaulting to the standard 9% rate.
04
Transfer Pricing Compliance
Conduct related party transactions at arm length with proper documentation.
05
Audited Financials
Prepare and maintain audited financial statements for each tax period.
06
Additional Rules
Follow any supplementary requirements issued by the Minister of Finance.
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.
FTA-approved
Qualifying & Excluded Activities
Your free zone entity actual activities must fall within the FTA Qualifying Activities list (or be ancillary to it) to benefit from the 0% rate. Activities on the Excluded list are taxed at 9%.
Qualifying · 0%
Qualifying Activities
- Manufacturing & processing of goods or materials
- Trading of Qualifying Commodities
- Holding of shares and other securities for investment
- Ownership, management & operation of ships
- Reinsurance services
- Fund management services
- Wealth and investment management services
- Headquarter services to Related Parties
- Treasury and financing services to Related Parties
- Financing & leasing of aircraft
- Distribution of goods from a Designated Zone
- Logistics services
- Any ancillary activity to the above
Excluded · 9%
Excluded Activities
- Banking activities
- Insurance activities (other than reinsurance & specified captives)
- Finance & leasing other than to related parties
- Ownership or exploitation of UAE-situated immovable property
- Ownership or exploitation of intellectual property (modified nexus)
- Any ancillary activity to the above
Transfer Pricing
Transfer Pricing Thresholds
Related-party transactions must be at arm’s length. Documentation requirements escalate with group size and transaction volume.
Master File
AED 3.15B+
Required for MNE groups with consolidated revenues of AED 3.15B or more.
Local File
AED 40M+
Required if total related party transactions exceed AED 40M in a tax period.
Country by Country Report
AED 3.15B+
For Ultimate Parent Entities of MNE groups meeting the AED 3.15B threshold.
Disclosure Form
Every CT return
Must accompany every CT return for entities with related party transactions.
What Non-Compliance Costs
UAE Corporate Tax Penalties
FTA enforcement is intensifying. Penalties accumulate and are not negotiable.
| 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. |
Why BCL Globiz
The corporate tax partner Dubai businesses trust
What our Dubai clients get from working with BCL Globiz:
✓
DMCC, DIFC and Dubai Internet City QFZP filings
✓
MNE subsidiary CT and TP, Master File, Local File and CbC
✓
Mainland LLC and family group tax group elections
✓
DFSA audit financials reconciled with FTA CT filing
✓
Dedicated Manager with WhatsApp access
✓
Filings ahead of the 9 month FTA deadline
Included in our Dubai CT engagement
- FTA TRN registration via EmaraTax
- DMCC, DIFC and free zone QFZP eligibility memo
- Tax group election analysis for mainland family groups
- TP disclosure form and Local File where applicable
- DFSA or external audit financials coordination
- CT return preparation, review and filing
- Penalty exposure scan and remediation plan
- Dedicated Manager with WhatsApp access
Frequently Asked Questions
Dubai Corporate Tax: Common Questions
The questions Dubai businesses ask us most often, answered specifically for this emirate’s economic profile.
No. DMCC registration makes you a Free Zone Person. QFZP additionally needs substance, qualifying activity income, the 0% election, TP compliance and audited financials. All six together.
The income is non qualifying. Within the 5% or AED 5M de minimis, QFZP is retained and only that slice is taxed at 9%. Above de minimis, the entire base flips to 9%.
No. DIFC is a financial free zone with DFSA regulation. Qualifying activities (fund management, wealth management, reinsurance, treasury to related parties) sit on the FTA list. QFZP still requires all six conditions to hold simultaneously.
Likely yes, if revenue has stayed below AED 3M every period since 1 June 2023. SBR treats taxable income as zero. The election is locked in once made.
When the UAE entity is part of an MNE group with consolidated revenue of AED 3.15B or more (approximately EUR 750M).
A QFZP and a standard rate entity cannot be in the same tax group. The two regimes are incompatible. Either keep them separate or restructure into a single regime.
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