Introduction
The introduction of Corporate Tax in the UAE has reshaped how businesses approach financial planning and compliance. Understanding how this tax works is crucial for avoiding penalties and optimizing profitability.
What Is UAE Corporate Tax?
Corporate Tax is a 9% tax on business profits exceeding AED 375,000, effective from June 2023. Small businesses earning below this threshold are exempt, but must still register and maintain proper accounting records.
Who Is Subject to Corporate Tax?
- UAE companies and foreign entities operating in the UAE
- Free Zone entities (with conditions for qualifying income)
- Individuals engaged in business activities under a commercial license
Tax Deductions and Exemptions
The UAE Corporate Tax Law allows deductions for legitimate business expenses, salaries, rent, and operational costs.
Some entities, like government organizations and certain investment funds, are exempt.
How to Stay Compliant
Businesses must:
- Register for corporate tax with the Federal Tax Authority (FTA)
- Maintain accurate financial statements
- File annual tax returns on time
Conclusion
Compliance doesn’t have to be complicated.
At AccuLinks Consultancy, our tax experts help you register, calculate, and file your corporate tax efficiently — keeping your business fully compliant and optimized for growth.