Corporate Taxation in the UAE – Laws, Compliance, and Expert Guidance

UAE Corporate Tax Guide: Laws, Compliance, and Professional Support

The United Arab Emirates (UAE) has long been known for its business-friendly tax policies. However, with the introduction of corporate tax in the UAE, companies must comply with new regulations set by the Federal Tax Authority (FTA). This guide explores Corporate Tax Laws, compliance requirements, and how Flying Colour Tax Consulting can assist businesses in navigating this evolving landscape.

Understanding Corporate Tax in the UAE

What is Corporate Tax in the UAE?

Corporate tax is a direct tax imposed on business profits in the UAE. Introduced under Federal Decree-Law No. 47 of 2022, Corporate Tax applies to most business entities, with specific exemptions and incentives for free zone companies and small enterprises.

Legal Framework Governing UAE Corporate Tax

➥ Federal Decree-Law No. 47 of 2022 – Establishes the corporate tax framework.

➥ Federal Decree-Law No. 60 of 2023 – Introduces refinements and amendments.

➥ Ministerial Decision No. 43 of 2023 – Defines small business tax relief provisions.

FTA Notifications – Regular updates issued by the Federal Tax Authority on compliance requirements.

Corporate Tax Rates and Exemptions in the UAE

What is the Corporate Tax Rate in the UAE?

➣ 0% tax on taxable income up to AED 375,000 (to support small businesses).

➣ 9% corporate tax on taxable income exceeding AED 375,000.

➣ 15% corporate tax for multinational companies earning at least €750 million (as per OECD’s global minimum tax).

Corporate Tax Exemptions

Certain entities are exempt from Corporate Tax in the UAE, including:

• Government-owned entities
• Oil & gas companies involved in upstream operations
• Public benefit organizations
• Free zone businesses (subject to compliance with qualifying conditions)

Corporate Tax Compliance and Filing in the UAE

➤ Corporate Tax Registration Process

Businesses must register for corporate tax with the Federal Tax Authority (FTA) and obtain a Tax Registration Number (TRN).

➤ Corporate Tax Return Filing

Taxpayers must file their corporate tax return within 9 months from the end of their financial year.

Failure to comply may result in penalties imposed by the FTA.

➤ Tax Deductible Expenses

Businesses can deduct certain expenses from their taxable income, such as:

• Employee salaries
• Business-related expenses
• Depreciation on fixed assets

How Flying Colour Tax Consulting Can Help

Flying Colour Tax Consulting provides expert services to ensure compliance with UAE corporate tax regulations. Our offerings include:

➦ Corporate Tax Registration and Compliance

We help businesses register for corporate tax and stay compliant with FTA regulations.

➦ Corporate Tax Return Filing Services

Our team ensures accurate tax return filing, reducing the risk of penalties.

➦ Corporate Tax Advisory Services

We provide tax planning strategies to minimize tax liabilities and maximize exemptions.

➦ Financial and Accounting Services

We assist businesses with VAT compliance, bookkeeping, and tax-efficient structuring.

Conclusion

With Corporate Tax in the UAE now in effect, businesses must adapt to the new regulatory framework. Partnering with Flying Colour Tax Consulting ensures compliance while optimizing tax strategies.

To learn more about Corporate Taxation in the UAE – Laws, Compliance, and Expert Guidance, book a free consultation with one of the Flyingcolour team advisors.

Disclaimer: The information provided in this blog is based on our understanding of current tax laws and regulations. It is intended for general informational purposes only and does not constitute professional tax advice, consultation, or representation. The author and publisher are not responsible for any errors or omissions, or for any actions taken based on the information contained in this blog.