Who must register for Corporate Tax in the UAE?

Almost all mainland and freezone companies must register unless exempt under specific categories.

What is the Corporate Tax rate in the UAE?

9% on taxable income above AED 375,000. Below that threshold, the rate is 0%.

Do freezone companies pay Corporate Tax?

Freezone companies may qualify for a 0% rate if they meet the Qualifying Free Zone Person criteria; otherwise, they may be taxed at 9%.

What financial standards must be followed?

Companies must prepare financial statements based on IFRS.

How often are Corporate Tax Returns filed?

Annually, within the deadline assigned by the FTA.

Are small businesses exempt?

Not exempt, but they may benefit from the Small Business Relief scheme depending on turnover.

What records must companies maintain?

Invoices, contracts, ledgers, financial statements, tax workings, and Transfer Pricing documentation where applicable.

Do related-party transactions affect Corporate Tax?

Yes. Transfer Pricing rules apply, and supporting documentation is required.

What happens if a company files late?

Late filing results in administrative penalties and potential assessments from the FTA.

Do you provide corporate tax services in Dubai for both SMEs and large companies?

Yes. We support businesses of all sizes across mainland and freezones.

Corporate Tax Consultants in Dubai, UAE |Tax Services & Advisor

Corporate Tax Services in UAE

Under Federal Decree-Law No. 47 of 2022, UAE businesses are subject to Corporate Tax at a standard rate of 9% on taxable income exceeding AED 375,000. The Federal Tax Authority (FTA) requires all applicable businesses — mainland and free zone — to register, maintain IFRS-compliant financial records, and file annual CT returns within 9 months of their financial year-end. Non-compliance attracts administrative penalties starting from AED 10,000.

As dedicated corporate tax consultants in Dubai, our team at Zaidi Accountants handles end-to-end CT compliance: FTA registration, taxable income computation, transfer pricing documentation, and annual return submission. We serve mainland LLCs, free zone entities, holding companies, SMEs, and multinational branch offices across all UAE Emirates.

Our team provides comprehensive corporate tax services in Dubai, covering registration, return filing, tax planning, assessments, and advisory for both mainland and freezone entities. Whether your business is newly formed or preparing its first return, we guide you through every step with clarity and precision.

UAE Corporate Tax Compliance Requirements

The UAE Corporate Tax regime requires businesses to maintain accurate financial records, prepare Tax Returns annually, and classify taxable income correctly. Key compliance requirements include:

Registering for Corporate Tax through the FTA portal

All UAE juridical persons and natural persons conducting business must register for Corporate Tax via the EmaraTax portal. Registration is required regardless of whether the business is profitable. Failure to register on time attracts a fixed penalty of AED 10,000.

IFRS-aligned financial statements

Businesses must prepare financial statements in accordance with International Financial Reporting Standards (IFRS) or IFRS for SMEs. These statements form the basis for taxable income calculation and must be retained for at least 7 years.

Taxable income calculation

Taxable income starts with accounting profit and is then adjusted for: exempt income, non-deductible expenditure, interest limitation rules (capped at 30% of EBITDA), and transfer pricing adjustments for related-party transactions.

Annual CT return filing

The Corporate Tax return must be filed with the FTA within 9 months from the end of the relevant tax period. For businesses with a financial year ending 31 December 2024, the filing deadline is 30 September 2025.

Transfer pricing documentation

Businesses with related-party transactions must maintain a Master File and Local File if their total revenue exceeds AED 200 million, or if they are part of a multinational group. All related-party transactions must be conducted at arm's length.

Qualifying Free Zone Person (QFZP) criteria

To benefit from the 0% CT rate, a free zone entity must: maintain adequate substance in the UAE, earn Qualifying Income as defined by Ministerial Decision No. 139 of 2023, not elect to be subject to standard CT, and comply with transfer pricing rules. Failing any criterion subjects the entity to the standard 9% rate.

These rules apply to both mainland and freezone companies unless they are exempt under UAE law.

Why Corporate Tax Support Matters

Many UAE businesses underestimate the complexity of Corporate Tax compliance. Common errors — misclassifying exempt income, overlooking related-party adjustments, or missing the 9-month filing window — attract administrative penalties under Cabinet Decision No. 75 of 2023.

Corporate Tax compliance is more complex than VAT because it affects every part of the business — revenue, expenses, depreciation, capital structure, Transfer Pricing, and group arrangements. Mistakes can lead to penalties, incorrect tax payments, or loss of freezone benefits.

Accurate Corporate Tax support helps businesses:

File correct annual returns
Maintain eligibility for freezone 0% rates (where applicable)
Avoid penalties for misreporting or late filing
Document related-party transactions correctly
Improve tax planning and cashflow readiness
Reduce risks during FTA audits or assessments

How Our Corporate Tax Services Work

Step 1 — Initial tax position review

We review your existing financial statements, entity structure, and transaction history to identify your CT obligations, potential exemptions, and any exposure to penalties.

Step 2 — FTA registration

We handle your Corporate Tax registration on EmaraTax, ensuring correct legal entity classification, tax period selection, and submission of required supporting documents.

Step 3 — Taxable income computation

Our team prepares a detailed tax computation worksheet — starting from your IFRS profit, applying all statutory adjustments, and arriving at the final taxable income figure.

Step 4 — Transfer pricing review

For businesses with related-party transactions, we prepare arm’s length documentation, intercompany agreements, and — where required — the full Local File and Master File.

Step 5 — CT return preparation & filing

We prepare your annual Corporate Tax Return, cross-check all figures against your audited financials, and submit via EmaraTax before the 9-month deadline.

Step 6 — Post-filing support

We remain available for FTA queries, tax assessments, and objection filings. Our retainer clients receive quarterly CT health checks to catch issues before year-end.

Corporate Tax Services We Provide

Corporate Tax Registration

Completing registration and handling portal requirements.

Corporate Tax Return Filing

Preparing annual returns with accurate taxable income calculations.

Corporate Tax Deregistration

Closing tax accounts when a business ceases operations.

Corporate Tax Assessments

Reviewing statements, adjustments, and compliance gaps.

Tax Planning & Advisory

Guidance on allowable deductions, exemptions, and optimization.

Free Zone Corporate Tax Support

Qualifying income checks and compliance for 0% benefits.

Recordkeeping & Documentation Review

Ensuring audit-ready financials.

Common Corporate Tax Issues UAE Businesses Face

Corporate Tax compliance in the UAE involves several technical requirements that businesses frequently mishandle. Identifying these issues early — before your first CT return — prevents costly penalties and backdated liabilities.

ISSUE 01

Incorrect QFZP classification

Free zone companies that earn income from mainland UAE clients, hold mainland property, or fail the substance test cannot claim Qualifying Free Zone Person (QFZP) status. Many businesses discover this only during their first CT return — triggering a backdated 9% liability plus penalties. Early assessment prevents this.

Risk: Loss of 0% rate, backdated 9% CT liability and FTA penalties applicable from the first tax period.

ISSUE 02

Non-deductible expenses claimed

Certain expenses are specifically disallowed under UAE CT law: bribes, fines, penalties, entertainment exceeding the 50% cap, and payments to connected persons above market rate. Including these in your tax computation results in understated taxable income and potential FTA penalties of 50% of the unpaid tax.

Risk: FTA penalty of 50% of unpaid tax on any understated taxable income amount.

ISSUE 03

Missing transfer pricing documentation

Any payment between related parties — management fees, intercompany loans, royalties, or shared services — must be supported by an arm's length analysis. Without documentation, the FTA can disallow the deduction entirely or revalue the transaction, increasing your taxable income.

Risk: Full disallowance of related-party deductions and upward revision of taxable income by FTA auditors.

ISSUE 04

Incorrect tax period selection at registration

Businesses that select the wrong first tax period on EmaraTax may inadvertently create a short tax year with different filing deadlines. This is difficult to correct post-registration and can cause cascading compliance issues across subsequent CT cycles.

Risk: Misaligned deadlines, missed return windows, and compounding administrative penalties over multiple CT periods.

Stay compliant with confidence.

Speak to our corporate tax specialists today for a complimentary CT compliance review.

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