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Corporate Tax in UAE

In January 2022, the UAE Ministry of Finance announced the implementation of Federal Corporate Tax (CT) on business net profits, effective from June 1, 2023.
This direct tax, set at 9%, is one of the lowest compared to other GCC countries.
The UAE opted for 9% instead of the 15% global minimum tax rate agreed upon by G7 countries to reduce the impact on entrepreneurs.
Corporate tax applies to business entities, not individuals earning income without a commercial license.

TAX Rates

Tax Rate
0%

On net profit up to AED 375,000

Tax Rate
0%

On net profit up to AED 375,000

Different slabs for large multinationals in line with OECD Pillar 2

CASSA offers comprehensive corporate tax services
Maintaining accurate financial records is essential for VAT compliance. A trustworthy VAT consultant can improve operational efficiency, compliance, and performance.
  • Net profit up to AED 375,000: Tax-free
  • Net profit over AED 375,000: 9% tax
  • Multinational corporations Specific slabs under OECD Pillar 2

Significance of Corporate Tax

Significance of Corporate Tax

  • Build a sustainable economy
  • Enhance corporate governance
  • Strengthen the UAE as a global business hub
  • Meet international tax transparency standards

Why Choose UAE?

Despite corporate tax implementation, the UAE remains competitive with the lowest tax rates compared to other countries (e.g., France 26.5%, USA 21%, India 25-30%).

The GCC region attracts foreign investments due to favorable tax rates and strategic locations.

Scope of UAE Corporate Tax

Scope of UAE Corporate Tax

  • Businesses and individuals with a commercial license
  • Free zone businesses adhering to legal requirements.
  • Foreign entities with regular UAE business activities
  • Banking operations
  • Real estate management, construction, development, agency, and brokerage

Exemptions for Corporate Tax

Exemptions for Corporate Tax

  • Natural resource extraction businesses
  • Dividends and capital gains from qualifying shareholdings
  • Qualifying intra-group transactions and reorganisations
  • Individual earnings from employment, bank deposits, and personal investments

UAE-Sourced Income

Income derived from activities, contracts, or assets in the UAE is considered UAE-sourced and taxable. This includes services provided or utilized in the UAE, interest secured against UAE property, and insurance premiums related to UAE assets.

Corporate Tax on Free Zones

Qualifying Free Zone Persons (QFZP) benefit from a 0% tax rate on qualifying income if they:
  • Maintain sufficient substance in the UAE
  • Obtain eligible income
  • Meet transfer pricing requirements

Tax Losses and Implications

Tax Losses and Implications

Corporate income tax is based on net income. Losses can be offset against future income, providing financial advantages for businesses.

Contact us

Book your free consultation

Book your free consultation

At CASSA, we offer comprehensive corporate tax services to help businesses navigate UAE tax regulations. Our team ensures compliance and optimizes tax liabilities through:
  • In-depth knowledge of UAE and international tax laws
  • Customized tax solutions for various industries
  • Systematic tax planning and execution
  • Accurate corporate tax reports validated by accredited tax auditors
Protect your business with our expert corporate tax services. Ensure compliance and optimize your tax strategy with CASSA. Reach out to us today for strategic tax planning and peace of mind.

* We offer these services through our licensed agents and strategic partners, ensuring the highest level of professionalism and reliability.