The UAE’s Corporate Tax regime came into effect on 1 June 2023. It brings the country in line with international standards while maintaining incentives for businesses to thrive. We help you understand where you stand, what applies to you, and how to stay compliant.
Corporate Tax applies to most UAE-based companies—including those in free zones—as well as some individuals engaged in business activities.
You may be affected if you are:
• A UAE resident company (including holding companies and family foundations)
• A Free Zone business
• A non-resident deriving UAE-sourced income
• A natural person operating a business in the UAE
Some entities are exempt, such as certain government bodies and regulated public benefit organisations. Although not all exemptions are automatic.
Corporate Tax is based on your accounting profits, with adjustments. Special regimes apply in certain cases:
• Free Zone incentives under the Qualifying Free Zone Person (QFZP) framework entities may benefit from 0% corporate tax rate
• Tax transparency which results in a tax exemption may be available for family foundations and unincorporated partnerships (subject to conditions)
• Small Business Relief for turnover under AED 3m (until 31 Dec 2026)
All taxable persons must register with the Federal Tax Authority. Strict penalties apply for late or missed filings.
We assess your business to clarify how Corporate Tax applies and where relief may be available.
We provide bespoke advice, from entity classification to small business or Free Zone relief eligibility.
We manage registration with the Federal Tax Authority to ensure you're set up correctly.
We handle all compliance filings on your behalf – accurately and on time.
We oversee every step from regulatory understanding to final deadline tracking.
All UAE resident legal entities and some individuals conducting business are within scope, unless specifically exempt.
Non-residents are taxed on income from a UAE permanent establishment or UAE-sourced income (e.g. property).
Government entities, extractive industries, public benefit organisations and pension funds (subject to approval).
Small Business Relief is available for businesses earning under AED 3m annually (until 31 Dec 2026), offering simplified compliance.
Yes, but only for those qualifying under the QFZP rules. Non-qualifying Free Zone businesses are taxed at 9%.
They may be treated as tax transparent if conditions are met and applications approved by the Federal Tax Authority.
Yes. All taxable persons must register and comply with deadlines or face penalties.
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