The United Arab Emirates introduced Federal Corporate Tax (CT) under Federal Decree-Law No. 47 of 2022, administered by the Federal Tax Authority (FTA). For most businesses, the standard rate is 9% on taxable income exceeding AED 375,000, while income up to that threshold is taxed at 0%. This marked a significant shift for a jurisdiction long associated with zero corporate taxation on mainland business profits, and every incorporated entity in the UAE must now assess its registration and compliance obligations with the FTA.
Who Must Register and Pay Corporate Tax?
All UAE juridical persons — including mainland LLCs, private shareholding companies, and certain branches of foreign entities — must register for Corporate Tax with the FTA, even if they expect no tax liability. Natural persons conducting business in the UAE may also be subject to CT if their annual turnover exceeds AED 1 million. Registration deadlines depend on your licence issuance date or financial year end, and late registration can result in administrative penalties. Fintax Support Limited assists businesses in determining their CT status, completing EmaraTax registration, and maintaining the documentation the FTA requires.
Free Zone Considerations
Businesses operating in UAE free zones may benefit from a 0% Corporate Tax rate on qualifying income, provided they meet the conditions for a Qualifying Free Zone Person (QFZP) under Cabinet Decision No. 100 of 2023. Qualifying income generally includes income from transactions with other free zone persons and certain foreign-source income, while income from mainland UAE customers may be subject to the standard 9% rate. Maintaining adequate substance, audited financial statements, and transfer pricing documentation is essential to defend QFZP status during an FTA review.
Filing Deadlines and Compliance
Corporate Tax returns must be filed within nine months of the end of the relevant tax period, and any tax due must be paid by the same deadline. Businesses must keep accounting records for at least seven years and ensure their financial statements align with IFRS or IFRS for SMEs where applicable. The FTA may issue tax assessments, request clarifications, or initiate audits — particularly where related-party transactions or free zone elections are involved.
How Fintax Support Can Help
Navigating UAE Corporate Tax requires more than software — it demands an understanding of FTA guidance, free zone rules, and how CT interacts with existing VAT obligations. Fintax Support Limited provides end-to-end CT compliance for UAE businesses: registration, tax return preparation, transfer pricing documentation, and representation during FTA enquiries. Whether you operate on the mainland or in a free zone, our team ensures your tax position is accurate, documented, and filed on time.
