Corporate Tax in the UAE: What You Need to Know

As of June 1, 2023, the UAE has implemented a corporate tax regime. This applies to all registered companies conducting business in the country. In this article, we explain how the tax works, who it applies to, and how to stay compliant.

Key Tax Details

0% — for annual profits up to AED 375,000

9% — for profits exceeding AED 375,000

0% — for qualifying Free Zone entities (subject to conditions)

Who Must Pay Corporate Tax?

Mainland companies (LLC, PJSC, etc.)

Branches of foreign entities

Free Zone companies (if non-qualifying)

Some freelancers and sole proprietors

Who is Exempt?

Individuals not conducting business

Government and registered charitable organizations

Qualifying Free Zone companies (with limited outside-zone activity)

Implementation Timeline

1. Corporate tax registration (TRN)

2. Preparation of IFRS-compliant financials

3. First tax return submission (within 9 months after fiscal year-end)

4. Tax payment

Penalties for Non-Compliance

Late registration: AED 10,000 fine

Late filing: AED 1,000–20,000 fine

Additional penalties for intentional non-disclosure

Your Support at Every Step

Corporate tax registration (FTA TRN)

Setting up IFRS-compliant accounting

Preparing and submitting tax returns

Avoiding penalties and audit support

Need Tax Help in the UAE?

Contact us — we offer a free initial tax assessment.