uae corporate tax registration

Businesses in the UAE are required to register for corporate tax, which is imposed on taxable income at the following rates:

For Corporate Tax registration in the UAE, businesses must provide specific documents. The entire process is online, and the required documents include:

Given their significance and contribution to the social fabric and economy of the UAE, several types of companies or organizations are exempt from corporate tax. So, these are referred to as Exempt Persons and consist of:

Automatically Exempted: 

Government entities Government-controlled entities specified by the cabinet decisions.

Exempted if notified to the Ministry of Finance (subject to certain conditions) 

Extractive Business Non-Extractive Natural Resource Business.

Exempt if listed in a cabinet decision

Qualifying Public Benefit Entities (PBE)

Exempt if applied to and approved by the Federal Tax Authority (subject to certain conditions) 

Public or private pension and social security funds. Qualifying Investment Funds Wholly owned & controlled UAE subsidiaries of a government entity

Government entities, government-controlled entities, and extractive and non-extractive natural resource businesses may be exempt from corporate tax filing, compliance, and registration requirements unless involved in taxable activities per the Corporate Tax Law.

• Individual Income Exemption:

Corporate tax does not apply to individual income unassociated with a trade or business in the UAE. This includes income from employment such as salary, real estate, interest income, share investments, and other personal income sources.

• Foreign Investors:

Foreign investors not engaged in business activities within the UAE are exempt from corporate tax obligations.

• Free Zone Businesses:

Businesses operating within free zones, provided they adhere to all regulatory criteria, will maintain corporate tax advantages.

• Capital Gains and Dividends:

Corporate tax does not apply to capital gains or dividends earned by UAE corporations or individuals from qualifying shareholdings.

• Intragroup Transactions:

Intragroup transactions meeting the criteria for tax grouping are not subject to corporate tax.

• Corporate Tax Rate Overview:

Enterprises in the UAE must pay a fixed percentage of their net profit as corporation tax if the taxable profit (net) surpasses AED 375,000.

• Corporate Tax Rates for UAE Businesses and Taxable Persons:

– 0% for taxable income up to AED 375,000.

– 9% for taxable income exceeding AED 375,000.

• Corporate Tax Rates for Entities in Qualifying Free Zones:

– 0% on qualifying income.
– 9% on income other than qualifying income.

• Qualifying Free Zone Person’s Net Profit:

The profit earned by a Qualifying Free Zone Person from international or UAE Free zone business is labelled as “Qualifying Income.”

Before registering for corporate tax, it’s vital to assess the risks thoroughly and legal factors related to the business, pre- and post-implementation. This approach ensures compliance with the country’s tax regime. Failure to properly assess may lead to corporate tax fines and penalties.

The assessment before corporate tax registration encompasses three key components: impact assessment, document assessment, and tax compliance assessment. Consider engaging professional corporate tax consultants or specialized firms for high-quality corporate tax assessment services.