Corporate Tax Services
Expert Advisory & Compliance for UAE Corporate Tax
Corporate Tax (CT) is a form of direct tax levied on the net income or profit of corporations and other entities from their business activities. Governed by Federal Decree-Law No. 47 of 2022 (as amended by Federal Decree-Law No. 60 of 2023), CT applies across all emirates of the UAE.
Businesses became subject to UAE Corporate Tax from the beginning of their first financial year starting on or after 1 June 2023. Tax Watch Law Firm provides comprehensive CT advisory and compliance services to help businesses navigate this regulatory framework effectively.
Objectives of UAE Corporate Tax
The introduction of Corporate Tax aligns with UAE's strategic vision and international commitments.
Global Business Hub
Cement UAE's position as a leading global hub for business and investment.
Strategic Development
Accelerate UAE's development and transformation to achieve its strategic objectives.
International Standards
Reaffirm commitment to meeting international standards for tax transparency and preventing harmful tax practices.
Corporate Tax Rates
UAE Corporate Tax rates as prescribed by the Ministry of Finance.
For taxable income up to AED 375,000
For taxable income above AED 375,000
For large multinationals meeting specific criteria under OECD Base Erosion and Profit Shifting Project (Pillar Two)
Who is Subject to Corporate Tax?
Corporate Tax applies to the following entities and activities in the UAE:
- All businesses and individuals conducting business activities under a commercial licence in the UAE
- Free zone businesses (CT incentives continue for compliant free zone businesses that do not conduct mainland business)
- Foreign entities and individuals conducting trade or business in the UAE in an ongoing or regular manner
- Banking operations
- Businesses engaged in real estate management, construction, development, agency and brokerage activities
Exemptions from Corporate Tax
Certain businesses and income types are exempt from UAE Corporate Tax.
Natural Resources Extraction
Businesses engaged in the extraction of natural resources remain subject to Emirate level corporate taxation.
Qualifying Shareholdings
Dividends and capital gains earned by a UAE business from its qualifying shareholdings are exempt from CT.
Intra-Group Transactions
Qualifying intra-group transactions and reorganizations are not subject to CT, provided necessary conditions are met.
Corporate Tax Does Not Apply to Individuals For:
- Salary and other employment income from public or private sector
- Interest and other income from bank deposits or saving schemes
- Foreign investor's income from dividends, capital gains, interest, royalties and other investment returns
- Investment in real estate by individuals in their personal capacity
- Dividends, capital gains and other income from owning shares or securities in personal capacity
How Tax Watch Law Firm Assists with Corporate Tax
The Federal Tax Authority (FTA) is responsible for the administration, collection, and enforcement of Corporate Tax. Tax Watch Law Firm provides comprehensive support to help businesses navigate CT requirements:
- Corporate Tax registration and compliance advisory
- CT return preparation and filing with the Federal Tax Authority
- Exemption eligibility assessment and documentation
- Free zone CT incentive compliance guidance
- Intra-group transaction structuring and advisory
- CT planning and optimization strategies
- FTA audit support and representation
We ensure your business remains fully compliant with UAE Corporate Tax regulations while optimizing your tax position within the legal framework.
Navigate UAE Corporate Tax with Confidence
Corporate Tax compliance is essential for businesses operating in the UAE. Tax Watch Law Firm provides expert guidance to help you understand your obligations, claim applicable exemptions, and maintain full compliance with FTA regulations.
On Watch for Your Compliance — and Your Defense.
Get Corporate Tax Advisory