BCL GLOBIZ • UAE CORPORATE TAX
Corporate Tax Services in Dubai
Rates, compliance & expert support — from registration to annual filing. Dedicated Manager, transparent pricing, and SOP-driven delivery for 1000+ UAE businesses.
Simple, transparent pricing
Everything Your Business Needs — Accounting, Tax, Audit & Beyond
✦ Accounting & Book-keeping is included FREE in all packages · 🛡️ 100% Refund Guarantee within the first 3 months.
- SBR Eligibility Assessment
- SBR Election Filing via EmaraTax
- Revenue Documentation Review
- Strategic SBR Advisory
- Filing Confirmation & Compliance Memo
- Penalty Exposure Review
- Full Taxable Income Computation
- Deduction Optimisation
- Financial Statement Reconciliation
- Exempt Income Classification
- Connected Persons Disclosure Check
- Post-Filing Advisory Call
- QFZP Status Verification
- Qualifying vs Non-Qualifying Income Split
- Adequate Substance Review
- Audited Financials Coordination
- Transfer Pricing Disclosure Form
- QFZP Continuity Strategy Report
UAE Corporate Tax Explained
Understanding Corporate Tax in Dubai
Corporate tax is levied on the taxable income of companies and juridical persons operating in the UAE.
It is governed by Federal Decree-Law No. 47 of 2022 and is effective for financial years starting on or after 1 June 2023.
0%
Tax Rate
Up to AED 375,000
Small businesses, startups, sole proprietors — zero liability
9%
Tax Rate
Exceeding AED 375,000
Mainland & freezone businesses — the standard UAE rate
15%
Tax Rate
MNEs with global revenue ≥ EUR 750M
Large multinationals — OECD Pillar Two (from Jan 2025)
- Key Statistic
Over 450,000 businesses have registered for corporate tax with the FTA to date. FTA audit activity has increased significantly — non-compliance is no longer a low-risk position.
- Global Context
The UAE’s 9% corporate tax rate is among the lowest globally — below the UK (25%), US (21%), and most EU countries. The UAE remains one of the world’s most tax-efficient business jurisdictions.
Filing & Payment: Businesses are required to register with the Federal Tax Authority, file tax returns, and pay any tax due within specified deadlines. The CT return — along with any tax payment due — must be submitted within 9 months of the end of the relevant tax period to ensure full compliance.
Who Pays
Who Is Subject to Corporate Tax in Dubai?
UAE corporate tax applies broadly. Understanding which category your business falls into determines your registration obligation, filing timeline, and applicable rate.
UAE Companies
- All companies incorporated in Dubai — mainland, freezone, and branches of foreign companies
- Mainland LLCs, free zone entities, and foreign company branches effectively managed from the UAE
Foreign Companies
- Foreign companies with a Permanent Establishment (PE) in Dubai
- Entities deriving UAE-sourced income — even without a physical presence
Natural Persons
- Individuals carrying out business activities in Dubai that require a commercial licence
- Persons undertaking activities similar to those conducted by juridical entities
- Threshold: total business turnover exceeding AED 1 million in a calendar year
Exempt Persons — Who Does NOT Pay
- Government entities and government-controlled entities engaged in mandated activities
- Qualifying public benefit entities listed by Cabinet Decision
- Public or private pension and social security funds
- Extractive businesses (oil & gas) subject to emirate-level taxation
- Qualifying investment funds meeting specific FTA conditions
NOTE: Exemption is NOT automatic — it requires formal application to and approval by the FTA. Do not assume exemption without professional advice.
Worked examples
Practical Tax Calculations — Dubai Businesses
Rates mean little without context. Here are three Dubai-specific examples showing exactly how corporate tax is calculated.
Worked examples
Example 1 — Dubai Mainland IT Consultancy
AED 500,000 net profit
First AED 375,000 @ 0%
AED 0
Remaining AED 125,000 @ 9%
AED 11,250
Total Tax Liability
AED 11,250
QFZP (all conditions met)
Example 2 — DMCC Trading Company
AED 2M qualifying freezone income
Qualifying Free Zone Person (QFZP)
Yes
Qualifying income (FZ-to-FZ)
0%
Total Tax Liability
AED 0
Mainland E-Commerce
Example 3 — Mainland E-Commerce
AED 1.5M net profit
First AED 375,000 @ 0%
AED 0
Remaining AED 1,125,000 @ 9%
AED 101,250
Total Tax Liability
AED 101,250
Free Zone
QFZP Requirements in UAE Free Zones
To qualify as a Qualifying Free Zone Person (QFZP) under UAE Corporate Tax law and benefit from the 0% rate on qualifying income, a Free Zone entity must meet ALL of the following core conditions simultaneously.
01 Adequate Substance
Maintain sufficient employees, assets, and operational expenses within the Free Zone. Substance cannot be nominal.
02 Qualifying Income
Earn income primarily from qualifying activities, keeping non-qualifying income within de minimis limits (5% of total revenue or AED 5M, whichever is lower).
03 0% CT Election
Formally opt to benefit from the 0% corporate tax rate, rather than defaulting to the standard 9% regime.
04 Transfer Pricing Compliance
Conduct all related-party transactions at arm's length and maintain proper TP documentation as required by FTA.
05 Audited Financial Statements
Prepare and maintain audited financials for each tax period.
06 Additional Rules
Follow any supplementary requirements issued by the Minister of Finance from time to time.
NOTE: Failing even ONE of these conditions causes ALL income — not just the non-qualifying portion — to be taxed at the standard 9% rate. QFZP status requires ongoing monitoring, not just a one-time assessment. BCL Globiz provides annual QFZP health checks.
Qualifying vs Non-Qualifying Revenue
Not all freezone income qualifies for the 0% rate. The distinction between qualifying and non-qualifying revenue is critical for QFZP status — and one of the most frequently misunderstood areas of UAE corporate tax.
Non-Qualifying Revenue
9% Corporate Tax
Non-Qualifying Revenue
9% Corporate Tax
- Income from excluded activities or non-qualifying activities with Non-Free Zone Persons
- Income from Permanent Establishments (domestic or foreign PE) — always taxed at 9%
- Commercial property income with Non-Free Zone Persons + all non-commercial property income
Qualifying Revenue
0% Corporate Tax
Qualifying Revenue
0% Corporate Tax
- Income from transactions with other Free Zone Persons (excluding Excluded Activities)
- Certain other income where the de minimis rule is satisfied
- Subject to de minimis: non-qualifying income ≤ 5% of total revenue OR AED 5M (lower of the two)
Key Rules You Must Know
De minimis threshold: Non-qualifying income must not exceed 5% of total revenue OR AED 5 million (whichever is lower). Breach this, and all income becomes taxable at 9%.
Permanent Establishments (PEs): Income attributable to domestic or foreign PEs is always taxable at 9% — it never qualifies for the 0% rate.
Immovable property: Commercial property income with Non-Free Zone Persons, and all non-commercial property income, is taxed at 9%. PE income and immovable property income are excluded from the de minimis base.
FTA-approved
What Are Qualifying Activities?
Qualifying Activities are the specific business activities approved by the FTA that generate Qualifying Income eligible for the 0% corporate tax rate for QFZPs. Your freezone entity’s actual activities must fall within this list — or be ancillary to it — to benefit from the 0% rate.
QUALIFYING ACTIVITIES
0% RATE
- Manufacturing & processing of goods
- Holding of shares & other securities
- Ownership, management & operation of ships
- Reinsurance, fund management, wealth & investment management
- Headquarter services to related parties
- Treasury & financing services to related parties
- Financing & leasing of aircraft
- Financing & leasing of aircraft
- Distribution from a Designated Zone
- Logistics services
EXCLUDED ACTIVITIES
9% RATE
- Banking activities
- Insurance activities (other than reinsurance & specified captives)
- Finance & leasing other than to related parties
- Ownership or exploitation of UAE-situated immovable property (other than commercial in a free zone, transacted with another F2P)
- Ownership or exploitation of intellectual property (qualifying IP-excepted under modified nexus)
- Any ancillary activity to the above
- Ancillary Activities Also Qualify
Activities ancillary to the main Qualifying Activities above also qualify — provided they are genuinely supportive and not stand-alone revenue generators. BCL Globiz can assess whether your specific activity mix qualifies.
Free Zone Breakdown
Dubai Freezone Corporate Tax — 8 Major Freezones
Dubai’s major freezones each have distinct sector profiles and QFZP eligibility implications. The most comprehensive freezone CT breakdown available.
JAFZA
Sectors:Logistics, manufacturing, trade
Condition:Qualifying income from approved activities
Dubai Internet City
Sectors:Tech, IT, e-commerce
Condition:Activities must be within qualifying categories
Dubai Media City
Sectors:Media, publishing, marketing
Condition:Non-qualifying income taxed at 9%
Dubai Healthcare City
Sectors:Healthcare, pharma
Condition:Qualifying activities must be delineated
Free Zone Breakdown
Dubai Freezone Corporate Tax — 8 Major Freezones
Dubai’s major freezones each have distinct sector profiles and QFZP eligibility implications. The most comprehensive freezone CT breakdown available.
Freezone
Key Sectors
QFZP Potential
Key Condition
Transfer Pricing
When Transfer Pricing Applies to Your Business
Transfer pricing rules require that transactions between related parties are conducted at arm’s length — on terms that independent third parties would agree to. If your Dubai business transacts with parent companies, subsidiaries, or associated persons, you have TP obligations.
Master File
Required for MNE groups with consolidated revenues of AED 3.15 billion or more.
Local File
Required if total related-party transactions exceed AED 40 million in a tax period.
Country-by-Country Report
For Ultimate Parent Entities of MNE groups meeting the AED 3.15B threshold.
Disclosure Form
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. Here’s exactly what non-compliance costs.
Violation
Penalty
Notes
Failure to register for Corporate Tax
AED 10,000
Per instance; FTA notifies deadline
Late submission of CT return
AED 500/mo → AED 1,000/mo
First 12m @ AED 500; thereafter AED 1,000
Failure to maintain financial records
AED 10,000 / 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 – AED 20,000
Based on underpaid tax amount
Tax evasion / fraudulent return
Up to 5× unpaid tax
+ criminal referral; personal liability possible
Failure to register for CT (repeat)
AED 20,000
Escalating penalty structure
- NOTE
Late registration carries AED 10,000 per instance. Failure to file costs AED 500/month for the first 12 months, rising to AED 1,000/month. These amounts accumulate and are not negotiable.
What non-compliance costs
UAE Corporate Tax Penalties
FTA enforcement is intensifying. Penalties accumulate and are not negotiable. Here’s exactly what non-compliance costs.
Violation
Penalty
Failure to register for Corporate Tax
AED 10,000
Late submission of CT return
AED 500/mo → AED 1,000/mo
Failure to maintain financial records
AED 10,000 / 20,000
Failure to submit audited financials
AED 50,000
Incorrect CT return (no fraud)
AED 500 – AED 20,000
Tax evasion / fraudulent return
Up to 5× unpaid tax
Failure to register for CT (repeat)
AED 20,000
- NOTE
Late registration carries AED 10,000 per instance. Failure to file costs AED 500/month for the first 12 months, rising to AED 1,000/month. These amounts accumulate and are not negotiable.
What you get
What Our Corporate Tax Service Includes
Seven commitments that define how we work — and why UAE businesses choose BCL Globiz for corporate tax.
Dedicated Manager
One named Manager handles
your registration, filing, and queries — not a call centre.
WhatsApp Access
Direct line to your Manager. Fast responses, clear updates — no chasing required.
SOP-Driven Process
Every engagement follows documented procedures. Nothing falls through the gaps.
Transparent Pricing
Upfront fees. No hidden charges. You know the cost before we start.
Mainland + Freezone
Complex dual-license structures, QFZP assessments, and multi-entity groups.
End-to-End Coverage
Registration to filing, transfer pricing documentation, and FTA audit support.
Fast Turnaround
Registration within FTA deadlines. Filings submitted before the 9-month window closes.
Why BCL Globiz
The corporate tax partner for businesses that demand precision
- Dedicated Manager assigned from Day 1 — not a team inbox
- WhatsApp access to your Manager — direct, fast, no chasing
- All-inclusive packages with transparent, upfront pricing
- SOP-driven delivery — every step documented so nothing is missed
- Expertise across accounting, VAT, CT, transfer pricing, and company setup
- Serving 1000+ UAE businesses including mainland LLCs, DMCC, JAFZA, and international groups
Included in our CT service
Everything you need for full CT compliance
- TRN registration on EmaraTax
- Full CT return preparation & filing
- QFZP eligibility assessment
- Small Business Relief analysis
- Transfer pricing disclosure form
- Penalty risk review
- Dedicated Manager + WhatsApp support
Frequently Asked Questions
Corporate Tax Dubai
Quick answers to the questions UAE businesses ask most often. Still unsure? Our team is happy to help.
Yes. Registration is mandatory regardless of profit or loss. Non-registration carries an AED 10,000 penalty even if your taxable income is zero.
Freezone companies qualifying as QFZPs pay 0% on qualifying income. All other freezone income is taxed at 9% on profits above AED 375,000. Qualifying requires meeting substance, activity, and de minimis conditions.
The CT return must be filed within 9 months of your financial year-end. Payment is due on the same date.
The FTA has published a specific list — see the Qualifying Activities section above. Key examples include manufacturing, processing, trading of qualifying commodities, fund management, ship operations, aircraft leasing, logistics services, and headquarters services to related parties. Ancillary activities also qualify.
Per legal entity — unless your entities form an FTA-approved Tax Group, in which case the threshold applies once to the combined group.
SBR allows eligible businesses with annual revenue of AED 3 million or less to be treated as having zero taxable income. You must elect for it on your CT return. Key condition: revenue must be below AED 3 million in the current AND all prior tax periods from 1 June 2023.
Start today
Get a free Corporate Tax Assessment
Our team will review your structure, assess your CT obligations, and provide a clear action plan — at no cost. Transparent pricing, dedicated support, and a clear process from Day 1.
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+971 54 753 7820
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info@bcl.ae
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