The introduction of UAE Corporate Tax under Federal Decree-Law No. 47 of 2022, effective for financial years beginning on or after 1 June 2023, represents the most significant change to the UAE's fiscal landscape in a generation. At 9% on taxable income above AED 375,000, and 0% on qualifying income for eligible free zone persons, the corporate tax regime introduces complexities that most UAE businesses are still working through: transfer pricing obligations, interest limitation rules, loss carry-forward provisions, participation exemptions, tax group elections and the qualifying income conditions for free zone entities.
CashLaw Global's corporate tax practice manages the full lifecycle of UAE corporate tax compliance, from initial registration with the FTA through annual return preparation, filing and ongoing advisory. We assess each client's specific tax position, including the qualifying income analysis for free zone entities under Ministerial Decision No. 139 of 2023, transfer pricing documentation requirements for related-party transactions, and the correct treatment of exempt income, deductions and tax adjustments.
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Book Free ConsultationThe UAE applies a flat corporate tax rate of 9% on taxable net income exceeding AED 375,000. Taxable income up to and including AED 375,000 is subject to a 0% rate to support growing business entities.
Yes. Every registered taxable person must file an annual Corporate Tax return and submit it to the FTA within 9 months from the end of their relevant financial year, regardless of whether the business generated a profit, sustained a loss, or remained operationally inactive.
The FTA imposes a fixed administrative penalty of AED 10,000 for the late registration of Corporate Tax, which is strictly enforced across both Mainland and Free Zone commercial entities.