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Corporate Tax

Corporate Tax in UAE

The UAE has introduced a modern Corporate Tax (CT) system to align with global financial standards and strengthen economic transparency. Effective from 1 June 2023, the UAE Corporate Tax applies to businesses and entities operating within the country.

At BigBiz Consultants, we help companies across the UAE understand, register, and comply with the new Corporate Tax law — ensuring full compliance while optimising tax efficiency and business profitability.

What Is Corporate Tax?

Corporate Tax is a direct tax imposed on a company’s net profit (taxable income) earned from business activities.

In simple terms, it is a tax paid on the profits that remain after deducting eligible expenses, allowances, and exemptions as per UAE regulations.

Corporate Tax Rates in the UAE
Taxable Income (AED)
  • Up to AED 375,000
  • Above AED 375,000
Corporate Tax Rate
  • 0% (Small business relief)
  • 9% (Standard corporate tax rate)
  • These rates are among the lowest globally, helping the UAE remain one of the most competitive destinations for business and investment.
Who Is Subject to Corporate Tax?
  • You must register for VAT if:
  • Companies and legal entities incorporated or effectively managed in the UAE.
  • Foreign entities that have a Permanent Establishment (PE) in the UAE.
  • Individuals conducting business or commercial activities that exceed the turnover threshold defined by the Federal Tax Authority (FTA).
Exempt Entities

Certain entities are exempt from Corporate Tax, including:

  • Government bodies and government-controlled entities.

  • Extractive and non-extractive natural resource businesses (subject to Emirate-level tax).

  • Qualifying free zone entities earning “qualifying income.”

  • Public benefit organisations and approved charitable foundations.

  • Qualifying investment funds, pension funds, and social security funds.

Corporate Tax Compliance Requirements
  • Every taxable business must:
  • Register with the Federal Tax Authority (FTA) for Corporate Tax.
  • File an annual tax return within 9 months after the end of its financial year.
  • Maintain proper financial records in accordance with International Financial Reporting Standards (IFRS).
  • Prepare audited financial statements, where required by law or free zone regulations.
  • At BigBiz Consultants, we ensure that your compliance process is smooth, accurate, and always up to date with FTA requirements.
Free Zone Businesses & Corporate Tax
  • Free zone companies can enjoy 0% Corporate Tax on qualifying income, provided they meet certain conditions such as:
  • Maintaining adequate economic substance in the UAE.
  • Preparing audited financial statements.
  • Meeting transfer pricing documentation requirements.
  • Our experts can help you evaluate your business status and structure operations to remain eligible for free zone tax benefits while staying compliant.
Our Corporate Tax Services
  • At BigBiz Consultants, we provide end-to-end corporate tax services for businesses across Dubai and the UAE:
  • Corporate Tax Advisory – Understanding applicability, exemptions, and strategic planning.
  • Corporate Tax Registration – Assisting with FTA registration, documentation, and system setup.
  • Tax Return Preparation & Filing – Accurate calculation of taxable income and timely submission.
  • Audit & Compliance Review – Ensuring readiness for FTA audits.
  • Free Zone & Group Structuring – Optimizing corporate structures to reduce tax impact.
  • Training & Support – Helping your finance team understand the corporate tax process.
Why Choose BigBiz Consultants
  • Expert Tax Professionals – Our team stays up to date with the latest UAE tax laws and FTA guidelines.
  • Customized Solutions – Whether you’re a startup or a multinational, we tailor strategies that fit your business model.
  • Compliance + Efficiency – We help you meet all legal obligations while optimizing your tax position.
  • Confidential & Reliable – Your financial data and tax information are always handled with strict confidentiality.
Benefits of Proper Corporate Tax Compliance
  • Avoid PenaltiesTimely filing and accurate records help you avoid fines from the FTA.
  • Improve CredibilityTransparent tax compliance boosts investor and stakeholder confidence.
  • Financial ClarityUnderstand your real profits and plan business growth effectively.
  • Global AlignmentCompliance with OECD and international tax standards.
  • Strategic PlanningLegal tax optimization and better resource management.
Frequently Asked Questions (FAQs)
The standard rate is 9% on taxable profits above AED 375,000.
Free zone entities may qualify for 0% tax on specific income if they meet all FTA requirements.
Within 9 months after the end of your company’s financial year.
Businesses with taxable income below AED 375,000 can benefit from small business relief.
Absolutely. From registration and filing to audit support and advisory, we manage everything for you.
Partner with BigBiz Consultants

Corporate tax compliance doesn’t have to be complicated.

At BigBiz Consultants, our experienced tax advisors ensure your business stays compliant, efficient, and financially strong in the evolving UAE tax landscape.

📞 Contact us today for a free consultation and let’s simplify your tax compliance journey together.

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Phone

+971569300454

Email

Info@bigbizconsultants.com

Location

Deira , Dubai, United Arab Emirates

BigBiz Consultant is a trusted business advisory firm in Dubai, specializing in company setup, consultancy, HR, IT, and organizational solutions. We help entrepreneurs and corporations simplify operations, stay compliant, and achieve sustainable growth in the UAE.

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