Corporate Tax

Legal Basis: Federal Decree-Law No. (47) of 2022, effective June 1, 2023, or later.

Purpose: Enhance UAE’s global business hub status, diversify revenue, meet international tax transparency standards.

Scope: Applies to all businesses and individuals with commercial licenses in UAE, including Free Zone businesses (with incentives), foreign entities with ongoing trade, banking, and real estate activities .

Taxation Basis: Residence and source .

Resident Person: Taxed on domestic and foreign income .
Non-Resident Person: Taxed only on UAE-sourced income .

Taxable Income Calculation: Starts from accounting net profit, adjusted per CT Law .

Deductible Expenses: Generally, all legitimate business expenses incurred for deriving taxable income are deductible .

Administering Authority: Federal Tax Authority (FTA) .

Rates: 0% for taxable income up to AED 375,000; 9% for taxable income above AED 375,000.

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Don't Miss the UAE Corporate Tax Filing Deadline – 30th Sept 2025

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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 1,050

AED 2,625

AED 4,725

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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

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Transfer Pricing Compliance

Benchmarking Analysis Report (Per Activity)
Mandatory for transaction entered with Related Party & Connected Person

Salary Benchmarking for KMP
(Mandatory for Salaries paid to Connected Person or KMPs)

AED 13,125

AED 10,500

Bundled Pricing

Bechmarking Analysis Report (Per Activity)

Salary Bechmarking for KMP

AED 13,125

AED 10,500

Total
Discounted Price

~~AED 23,625~~
AED 15,750

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Transfer Pricing Compliance

Benchmarking Analysis Report
(Per Activity)
Mandatory for transaction entered with Related Party & Connected Person

AED 13,125

Salary Benchmarking for KMP
(Mandatory for Salaries paid to Connected Person or KMPs)

AED 10,500

Bundled Pricing

Bechmarking Analysis Report (Per Activity)

AED 13,125

Salary Bechmarking for KMP

AED 10,500

Total - ~~AED 23,625~~

Discounted Price - AED 15,750

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MicroBiz CT Assist Package

AED 1,050

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Growth Accelerator CT package

AED 2,625

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QFZP Shield Pro Package

AED 4,725

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3) Startup-3 @ 8,400 AED/year:
Accounting (Up to 120 transaction Per Quarter) + Corporate Tax compliance + VAT compliance

4) Regular @ 10,500 AED/year:
Accounting (Up to 100 transaction Per Month) + Corporate Tax compliance + VAT compliance

The explanation on suitability of the Packages is listed below

MicroBiz CT Assist Package: Small Business Relief (SBR)

Concept: Eligible businesses treated as having zero taxable income (0% CT).
Eligibility Criteria:
Resident Person (natural or juridical).
Total gross business revenue AED 3 million or less in current and prior tax periods (since June 1, 2023).
Not a Qualifying Free Zone Person (QFZP) or MNE Group member (global revenue > AED 3.15 billion).
No artificial business splitting.
Key Benefits:
0% Corporate Tax liability.
Simplified compliance

Important Considerations / Limitations:

Temporary relief: Valid for tax periods ending on or before December 31, 2026.

Annual election required via CT return

Strict threshold: Exceeding AED 3M revenue in any year permanently disqualifies for that and subsequent years.

Mandatory record-keeping for 7 years, even with 0% tax.

Cannot accrue, utilize, or transfer tax losses during SBR period.

Net interest expenditure not carried forward from SBR period.

Exempt income (e.g., dividends) included in AED 3M revenue calculation for eligibility

For Tax Groups, AED 3M threshold applies to total group revenue.

Revenue threshold not pro-rated for shorter/longer first tax periods.

Compliance:

Maintain accurate financial records.

Prepare financial statements (IFRS for SMEs if revenue ≤ AED 50M)

Mandatory audited financial statements for companies with revenue > AED 50 million

Timely filing of CT returns.

Losses can be carried forward.

Unclaimed interest expenditure can be carried forward

Growth Accelerator CT Package: Standard Tax Rates for Growing Businesses (Turnover above AED 3 Million)

Applicability: Businesses with turnover above AED 3 million Tax Rates:
0% on taxable income up to AED 375,000 .
9% on taxable income exceeding AED 375,000 .
Key Benefits:
Significant tax-free buffer.
Predictable and competitive tax structure .

QFZP Shield Pro Package: Qualifying Free Zone Person (QFZP) Status

Concept: Preferential 0% corporate tax rate on “Qualifying Income” for eligible Free Zone entities .
Eligibility Criteria:
Registered in a Free Zone with significant physical presence.
Maintain “adequate substance” (sufficient staff, assets, operating expenditure)
Derive “Qualifying Income”
Not elect for standard CT rates.
Comply with transfer pricing regulations.
Maintain audited financial statements.
Non-Qualifying Revenue must not exceed “de minimis” threshold (lower of 5% of total revenue or AED 5 million).
Permanent Establishment (PE): Income generated by a PE outside the Free Zone (e.g., mainland)
is subject to 9% CT.

General Compliance and Strategic Considerations

Record-Keeping: Meticulous financial records and accurate financial statements are fundamental

Audited Financial Statements: Mandatory for QFZPs and companies with revenue > AED 50 million

Registration & Filing: All taxable persons must register for CT and file annual returns with FTA, even with 0% tax liability.

Professional Advisory: Highly recommended for CT registration, revenue tracking, accounting, filing, and continuous compliance.

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