The UAE has introduced a corporate tax to achieve several goals:

Consolidate its position as an international commerce and investment hub

Accelerate its growth and transformation to achieve strategic objectives

Comply with global tax transparency rules and avoid unfair tax practices

Who Does Corporate Tax Apply To?

The corporate tax applies to:

• All commercially licensed firms and individuals operating in the UAE
• Free zone businesses (with some exceptions)
• Foreign organizations and individuals conducting regular business in the UAE
• Real estate management, development, construction, agency, and brokerage firms
• Exceptions to Corporate Tax

There are some exceptions to corporate tax:

Companies that extract natural resources are excluded from corporate tax

Dividends or capital gains received by a UAE corporation from eligible shareholdings are not subject to corporate tax

Qualifying intra-group transactions and reorganizations are exempt from corporate tax if certain requirements are met

Corporate Tax Rates:

The corporate tax rates in the UAE are as follows:

1. 0% on taxable income up to AED 375,000
2. 9% of total taxable income over AED 375,000
3. A different tax rate (to be defined) for significant multinational corporations meeting certain requirements

How to Register for Corporate Tax

To register for corporate tax in the UAE, you need to:

1. Show your Federal Tax Authority (FTA) credentials if you have previously registered
2. Provide a copy of your current business license
3. Submit a copy of the owner’s or partners’ valid passports and Emirates ID
4. Provide a power of attorney (POA) or a Memorandum of Association (MOA)
5. Provide contact information for the person in question
6. Provide business contact information, including a complete address and a P.O. Box
7. Be aware of the tax season for corporations