Corporate Tax Services in Dubai, UAE

In June 2023, the UAE officially introduced Corporate Tax at a standard rate of 9%, marking a major shift in the country’s tax landscape. This tax applies to the net profits of businesses exceeding AED 375,000 annually. While the UAE continues to maintain one of the most business-friendly tax systems globally, compliance is now crucial.

At Shuraa Tax, we offer expert corporate tax services in Dubai, UAE tailored to your business structure. We ensure that you're not only compliant but also strategically positioned to minimise liabilities and optimise profitability.

What is Corporate Tax in the UAE?

Corporate tax in the UAE is a direct tax imposed on the net profits of corporations and businesses. Introduced in 2023, it marks the country’s effort to align with OECD international tax standards while maintaining its pro-business image.

Corporate Tax Rate in UAE:

• 0% for taxable income up to AED 375,000
• 9% for taxable income above AED 375,000
• 15% for large multinational groups under the OECD BEPS Pillar Two

UAE Corporate Tax Applies to:

• All UAE-resident businesses (mainland or free zone)
• Certain foreign entities doing business in the UAE
• Freelancers and sole proprietors, if their income exceeds the threshold
• Branches of foreign companies in the UAE

Corporate Tax Exemptions:

• Government-owned entities
• Extractive industries
• Qualifying public benefit entities
• Investment funds and pension funds (subject to conditions)

Corporate Tax Rules & Regulations in UAE

The corporate tax regime in the UAE is governed by Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, supported by various Cabinet and Ministerial Decisions. Here are the key rules and compliance obligations every business must follow under the UAE Corporate Tax Law:

1. Mandatory Corporate Tax Registration

All taxable persons (whether mainland or free zone entities) must register for corporate tax with the Federal Tax Authority (FTA), regardless of whether their income crosses the taxable threshold.

Deadline varies based on the type of business and the year of incorporation. Failure to register may result in a penalty of AED 10,000.

2. Accurate Recordkeeping and Documentation

Businesses are required to maintain proper books of accounts, supporting documents, and audit trails.

• Financial records must be kept for a minimum of 7 years.
• For Free Zone companies claiming 0% tax, audited financial statements are mandatory.
• Documentation must clearly support income, expenses, related party transactions, and tax adjustments.

3. Transfer Pricing Compliance

If your business engages in related party transactions, you must comply with the UAE’s transfer pricing regulations, aligned with OECD guidelines.

• Maintain Transfer Pricing Documentation (Local File and Master File)
• Submit a Disclosure Form along with your tax return
• Ensure transactions are conducted on an arm’s length basis

Transfer pricing applies even to free zone entities claiming 0% tax if they transact with related parties or connected persons.

4. Penalties for Non-Compliance

FTA has implemented a clear structure of administrative penalties to ensure compliance. These include:

• AED 10,000 for failure to register
• AED 500 to AED 20,000 for late return filing
• Up to 200% of unpaid tax for misreporting or incorrect declarations

Additional penalties for failure to keep records, submit transfer pricing documents, or respond to FTA requests.

Corporate Tax for Mainland vs. Free Zone Companies in Dubai

Corporate tax rules in the UAE vary depending on whether your business operates in the mainland or within a free zone.

A. Mainland Companies:

Subject to the standard 9% corporate tax on net profits exceeding AED 375,000.

B. Free Zone Companies:

Can enjoy 0% corporate tax if they meet conditions to be classified as a Qualifying Free Zone Person (QFZP), which includes:

• Earning qualifying income from permitted activities (e.g., export of goods, services to foreign markets)
• Substance requirements (maintaining staff, office space, and core activities within the free zone)
• Arm’s length pricing in related-party transactions
• Not opting to be taxed under the standard regime

Corporate Tax Services in the UAE

Corporate Tax Services in the UAE refer to professional assistance and advisory solutions that help businesses comply with the corporate tax regime introduced by the UAE government. These services include registration with the Federal Tax Authority (FTA), accurate tax return filing, tax planning, transfer pricing documentation, audit preparation, and penalty management.

At Shuraa Tax, we offer an end-to-end suite of corporate tax services in Dubai, tailored to your business model, industry, and jurisdiction.

Shuraa Tax Corporate Tax Service in UAE

From startups to multinationals, Shuraa Tax offers complete corporate tax solutions across all industries in the UAE.

1. Corporate Tax Registration

• Register your business with the Federal Tax Authority (FTA)
• Guidance on choosing the right legal structure and tax group
• Setup of Tax Registration Number (TRN) and supporting documentation

2. Corporate Tax Filing & Compliance

• Preparation and filing of annual corporate tax returns
• Review of financial statements to calculate taxable income
• Corporate tax compliance services to ensure accurate deductions, exemptions, and reliefs under UAE law

3. Tax Planning & Restructuring

• Identify opportunities for tax relief and efficiency
• Restructure business operations to remain compliant and profitable
• Corporate tax advisory services, such as, forming a tax group to consolidate profits/losses

4. Transfer Pricing & Documentation

• Comply with OECD-aligned transfer pricing rules
• Draft and maintain Local and Master Files
• Ensure accurate related-party disclosures

5. Audit Preparation & Representation

• Prepare documentation for tax audits and inspections
• Represent your business during FTA assessments and clarifications

6. Penalty Management & Appeals

• Identify and mitigate existing or potential corporate tax penalties
• File reconsideration requests, appeals, and handle voluntary disclosures
• Advise on best practices to avoid penalties in future tax periods

Other Taxation Services by Shuraa Tax

Shuraa Tax is your one-stop destination for all business taxation and compliance needs in the UAE:

• VAT Registration
• VAT Filing & Refunds
• VAT deregistration
• Excise Tax Consultancy
• Accounting & Bookkeeping
• External and Internal Audit Services
• Forensic Audit
• Liquidation Report in UAE
• Tax Residency Certificates (TRC)
• AML Compliance Service
• Penalty Waiver & Dispute Resolution
• Payroll Services

Looking to start or expand a business in the UAE?

Alongside taxation, Shuraa Business Setup can assist you with everything from company formation and licensing to visas and PRO services, making us your one-stop partner for business success in the UAE.

Get Started with Expert Corporate Tax Services in Dubai Today

Corporate tax is no longer optional in the UAE - it’s essential. Partner with Shuraa Tax to simplify your journey toward compliance, avoid costly penalties, and secure your business’s financial health. Request a FREE Tax Consultation Today. Let’s help your business remain tax-compliant and future-ready.

Commonly Asked Questions