UAE
Companies Taxation

Overview

The UAE implemented a federal corporate tax regime effective June 2023, marking a new phase in its fiscal framework. With a headline rate of 9% and 0% for small profits, the UAE maintains its reputation as a low-tax jurisdiction.

Free zones can still benefit from 0% tax, subject to compliance with qualifying criteria, making the UAE attractive for regional and global businesses.

UAE Tax System for Companies

Standard corporate income tax rate: 9% on taxable profits exceeding AED 375,000.
0% tax for profits up to AED 375,000 to support small businesses and startups.
Qualifying Free Zone entities may benefit from 0% tax on qualifying income.
No withholding taxes on dividends, interest, or royalties.
Broad network of double tax treaties (over 135 countries).
Exemptions for government entities, pension funds, and certain natural resource businesses.
Foreign tax credits available to avoid double taxation.
Transfer pricing rules aligned with OECD standards.
No personal income tax or capital gains tax at shareholder level.
Compliance with Economic Substance Regulations (ESR) and anti-avoidance rules.

Requirements and Procedures

Register for Corporate Tax with the UAE Federal Tax Authority (FTA).
Determine tax residency and Free Zone qualification status.
Maintain audited financial statements annually.
File Corporate Tax return within 9 months from the end of the financial year.
Submit Transfer Pricing Disclosure Form and Master File (if applicable).
Keep records and documentation for a minimum of 7 years.
Economic Substance Reporting obligations for relevant activities.
Notification requirements for Free Zone entities opting for 0% regime.
Register and submit ESR reports where applicable.
Comply with UAE AML and Ultimate Beneficial Owner (UBO) regulations

How Charfort can help you?

Corporate Tax registration and tax classification with UAE FTA.
Structuring advice for Free Zone entities to maximize tax benefits.
Preparation and filing of Corporate Tax returns and TP reports.
Assistance with Economic Substance compliance.
Audit coordination and financial reporting alignment.
ESR, UBO, and AML compliance support.
Advisory on use of double tax treaties and foreign tax credits.
Ongoing support for tax authority correspondence.
Tax-efficient cross-border structuring and repatriation planning.
Full compliance and risk management services for UAE operations.

Frequently asked questions

Everything you need to know about the process.

What is the UAE corporate tax rate?

9% applies to taxable income above AED 375,000. Income below this threshold is taxed at 0%.

Can Free Zone companies still enjoy 0% tax?

Yes, if they meet specific conditions and only earn qualifying income.

Are there any withholding taxes in the UAE?

No, there are no withholding taxes on dividends, interest, or royalties.

What are the compliance deadlines?

The tax return must be filed within 9 months from the end of the fiscal year.

Is transfer pricing documentation required?

Yes, for related-party transactions, including Master File and Disclosure Form.

Do all companies need to register for corporate tax?

Yes, all UAE companies must register, including Free Zone entities.

Can Charfort help with tax planning in the UAE?

Absolutely. We offer tailored structuring to minimize tax exposure legally.

Are financial audits mandatory?

Yes, companies must maintain audited financial statements to comply with the Corporate Tax regime.

Contact us today

Charfort assists international clients in obtaining residence and citizenship under the respective programs. Contact us to arrange an initial private consultation.

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