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Lewis & Pecker
AVS Lewis & Pecker is a professional financial service provider based in the UAE that delivers customized business and financial solutions to organizations in the country.
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Corporate Tax Consultant in Dubai, UAE
What is Corporate Tax?
Corporate Tax is a direct tax levied on the net income or profits of businesses operating within the UAE. It is commonly referred to as Corporate Income Tax or Business Profits Tax. The UAE introduced Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, establishing a standardized corporate tax framework applicable to financial years starting on or after 1 June 2023 is Subject to Corporate Tax?
Corporate Tax applies to juridical and natural persons conducting business activities in the UAE. The law distinguishes between:
- Resident Taxable Persons: UAE-incorporated entities, foreign entities managed and controlled from the UAE, and natural persons engaged in business with an annual turnover exceeding AED 1,000,000.
- Non-Resident Taxable Persons: Foreign businesses with a Permanent Establishment (PE) in the UAE or deriving income from the UAE.
Ex
Certain entities are exempt from Corporate Tax, including:
- Government entities
- Public benefit organizations
- Investment funds
- Businesses engaged in the extraction of natural resources (which remain subject to Emirate-level taxation) .
Corporate Tax RE
The UAE has introduced a competitive corporate tax regime with a tiered structure:
- 0% on the portion of Taxable Income up to AED 375,000.
- 9% on the portion of Taxable Income exceeding AED 375,000.
- 0% withholding tax on specific of income for non-residents.
Corporate Tax for Free Zone Entities
Qualified Free Zone Persons (QFZPs) can benefit from a 0% tax rate on their Qualifying Income while non-qualifying income is subject to 9% Corporate Tax.
Taxable Income Calculation
Taxable Income is determa business’s net profit as per financial statements, with necessary adjustments for:
- Exempt income (such as dividends and capital gains under specific conditions).
- Non-deductible expenses (such as fines and personal expenses).
- Tax reliefs and deductions .
Corporate Tax Compliance Requirements
Businesses subject to Corp:
- Register for Corporate Tax with the Federal Tax Authority (FTA).
- Maintain proper financial records in compliance with International Financial Reporting Standards (IFRS).
- File annual Corporate Tax returns within nine months from the end of the financial year.
- Comply with transfer pricing rules for transactions between related parties.
Why is Corporate Tax Important?
The introduction of Corporate Tax in the UAE:economic stability and transparency.
- Aligns the UAE with global tax compliance standards.
- Encourages responsible corporate financial management.
How We Can Assist You
We provide expert Corporate Tax advisory services to help businesses understand their tax obligations, ensure compliance, and optimize tax efficiency.
Our services include:
- Corporate Tax registration & compliance.
- Taxable income computation & deductions.
- Transfer pricing advisory.
- Filing corporate tax returns.
Have Any Question?
Our financial and accounting experts are eager to help you.