UAE Corporate Tax: What Every Business Owner Needs to Know

Introduction to UAE Corporate Tax

The UAE introduced federal corporate tax effective for financial years starting on or after 1 June 2023. This marks a significant change for businesses operating in the UAE.

Key Points

**Standard Rate**: 9% on taxable income exceeding AED 375,000

**0% Rate**: Applied to taxable income up to AED 375,000

**Qualifying Free Zone Persons**: May benefit from 0% rate on qualifying income

Who is Subject to UAE Corporate Tax?

UAE resident companies and other legal persons

Foreign entities with a permanent establishment in the UAE

Individuals conducting business activities exceeding AED 1 million annually

Exemptions

Certain entities are exempt from corporate tax:

Government entities

Extractive industries (subject to Emirate-level taxation)

Qualifying public benefit entities

Registration Requirements

All taxable persons must register with the Federal Tax Authority and obtain a Tax Registration Number.

How We Can Help

121 AA Tax Services provides comprehensive UAE corporate tax services, from registration to return filing.

UAE Corporate Tax: What Every Business Owner Needs to Know

Introduction to UAE Corporate Tax

Key Points

Who is Subject to UAE Corporate Tax?

Exemptions

Registration Requirements

How We Can Help

In This Article

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