UAE Corporate TAX

UAE Corporate Tax |
9% Rate & Free Zone Relief

Implement Federal Decree-Law 47/2022: register for UAE Corporate Tax, apply 9% on profits over AED 375K, and leverage 0% Free Zone regimes.

All juridical persons—UAE-incorporated, effectively managed here, or non-residents with a UAE permanent establishment—must register and file CT returns. Qualifying Free Zone Persons enjoy 0% on qualifying income; transfer pricing and master-file documentation are mandatory for related-party transactions.

The UAE introduced Corporate Tax (CT) via Federal Decree-Law No. 47 of 2022 effective for financial years starting 1 June 2023. A 9% rate applies on taxable income above AED 375,000, with 0% below the threshold and for qualifying Free Zone entities. All taxable persons must register, file annual returns, and comply with transfer pricing and anti-abuse rules

What Is UAE Corporate Tax?

The UAE Corporate Tax regime, established under Federal Decree-Law No. 47/2022, imposes a 9% tax on net profits exceeding AED 375,000 and a 0% rate on lower profits and qualifying Free Zone income.

StandardMe’s Corporate Tax services include:

Registration Assistance: FTA portal setup and CT registration number acquisition.
Taxable Person Assessment: Identify scope—resident entities, PE holders, partnerships, and individuals.
Free Zone Qualification: Document economic substance and income characterization to secure 0% relief.
Transfer Pricing Compliance: Prepare master file, local file, and TP policies.
Return Preparation & Filing: Draft, review, and submit annual CT returns.
FTA Audit Support: Manage queries, assessments, and voluntary disclosures.

Why Engage Corporate Tax Advisory?

Proactive CT planning minimizes liabilities, avoids penalties, and integrates tax-efficient structures—especially in Free Zones and holding companies.

Key Benefits:

Optimized Tax Burden: Apply 0% for SME profits and Free Zone qualifying income.
Regulatory Compliance: Adhere to FTA deadlines, TP rules and anti-abuse provisions.
Cash-Flow Management: Plan payments around thresholds to preserve working capital.
Risk Mitigation: Pre-empt FTA audits with pre-filing reviews.
Substance Documentation: Satisfy economic substance requirements quickly.
Strategic Structuring: Align corporate, IFRS and group-level tax strategies.
Transparent Processes: Clear deliverables, timelines and deliverables.
Global Coordination: Support for multinationals under the OECD’s 15% minimum global tax.

StandardMe’s tailored CT service embeds best practices into your operations—ensuring you capture incentives, comply fully, and position for strategic growth.

Who Should Choose This Service?

UAE-Incorporated Companies of all sizes
Free Zone Entities seeking 0% CT relief
Multinationals with permanent establishments
SMEs & Startups near the AED 375K threshold
Holding & Investment Funds under Cabinet decisions
Individuals in Business Partnerships or sole proprietorships

Our 6-Step Corporate Tax Process

Step	Timeline
1. FTA Registration & Onboarding	Weeks 1–2
2. Tax Scope & Entity Assessment	Weeks 2–3
3. Free Zone Substance Review	Weeks 3–4
4. TP Documentation & Policy Draft	Weeks 4–6
5. Return Draft & Client Review	Weeks 6–7
6. FTA Submission & Follow-Up	Week 8

Most clients complete registration and first returns within two months of engagement.

Detailed Service Inclusions

Your dedicated tax consultant provides a Gantt-chart timeline, weekly progress calls, and portal access for document uploads and status tracking.

What’s Included

FTA Portal Setup: Corporate Tax registration and user access
Entity Qualification Memo: Resident, PE, partnership analysis
Free Zone Relief Dossier: Substance, income, operational proof
Master & Local Files: OECD-aligned TP documentation
Return & Working Papers: Computations, schedules, disclosures
FTA Filing & Liaison: Submission, payment coordination, audit response
Annual Health Check: Post-filing compliance review

FAQ: UAE Corporate TAX Advisory Services in Dubai

Who must register for UAE Corporate Tax?

Resident Persons: Companies, partnerships, foundations headquartered or managed in the UAE.
Non-Residents: Any foreign entity with a UAE PE or generating UAE-sourced income.
Sole Proprietors & Partners: Individuals carrying on business activities.
Registration is mandatory within 90 days of opening a financial year commencing on/after 1 June 2023.

How does the AED 375K threshold work?

First AED 375K: Taxed at 0%—designed to support SMEs and startups.
Excess Profit: Taxed at 9%—applied on annual net taxable income above AED 375K.
Threshold is per legal entity and resets each financial year.

Can Free Zone entities avoid CT entirely?

Qualifying Free Zone Person: 0% rate on “qualifying income” if economic substance and TP conditions are met.
Non-Qualifying Income: Activities outside the Free Zone scope revert to standard CT rates.
Entities must maintain local staff, premises, and governance to qualify.

What are the transfer pricing requirements?

Documentation: Master file, local file and related-party policies under the OECD’s BEPS Action 13.
Arm’s-Length Principle: Transactions must reflect market conditions as if between independent parties.
Compliance: Annual TP disclosures via FTA portal; penalty exposure for missing docs.

How do I file my annual CT return?

Format: Online via the FTA’s e-portal in XML format.
Deadlines: Within nine months after the financial year-end.
Support: StandardMe prepares, reviews, and submits returns, then assists with any FTA queries.

Are there penalties for non-compliance?

Late Registration: Up to AED 10,000.
Late Filing: AED 500 per day, capped at AED 40,000.
Under-payment: 1% per month on unpaid tax.
Our advisory model includes automated reminders and a penalty-appeal framework to protect you.

How does CT interact with VAT?

Separate Taxes: CT on profits; VAT on supplies of goods/services.
Input VAT Credit: CT-deductible as part of expense treatment; not a cash refund.
Compliance: Both taxes require distinct registrations and filings; we align processes to avoid conflicts.

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UAE Corporate TAX