Blog

UAE Corporate Tax in 2025: Key Considerations for Businesses and the Role of Professional Accountants

The introduction of Corporate Tax in the UAE, effective from 1 June 2023, marked a major shift in the country’s business landscape. Now, in 2025, businesses must ensure they are not only compliant but also structured in a tax-efficient manner to remain competitive.

At AVS Lewis & Pecker Auditing, we support businesses through every stage of Corporate Tax readiness — from registration,assessment to tax return filing and strategic planning.

Understanding UAE Corporate Tax

On 9 December 2022, the UAE Ministry of Finance released Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (UAE CT Law) to formally enact the Federal Corporate Tax regime in the UAE.

Under the current law:

A 9% corporate tax applies to taxable income exceeding AED 375,000
Free zone entities may qualify for a 0% rate, subject to specific conditions
Transfer pricing rules and arm’s length principles, based on OECD Guidelines, apply to related-party transactions
Certain entities may be exempt from Corporate Tax under the UAE Corporate Tax Law, including qualifying investment funds, government entities, government-controlled entities, pension or social security funds, and public benefit entities—provided they meet the relevant conditions outlined in the law and implementing decisions.

How Accountants Add Value in Corporate Tax Compliance

Entity Classification & Impact Analysis
- We assess whether your business is within the scope of UAE Corporate Tax and help determine how your structure — mainland, free zone, or offshore — affects your obligations.
Corporate Tax Registration & Timely Filing
- We handle the complete Corporate Tax registration process with the FTA and prepare accurate tax return filings (Form CT1), ensuring deadlines are met and documentation is in place.
Transfer Pricing Compliance
- We assist in:
  - Preparing and maintaining Master File and Local File
  - Establishing defensible intercompany pricing policies
  - Performing benchmarking studies in line with OECD requirements
Restructuring and Tax Planning
- Our advisors help optimize your corporate structure, intercompany transactions, and expense management — all aimed at reducing tax liability while staying compliant.
Support During FTA Reviews and Audit Preparation
- We assist clients in preparing for potential FTA reviews by helping organize documentation, reconciling tax records, and ensuring that corporate tax filings are clear, consistent, and supported. Our goal is to ensure you’re well-prepared and compliant should a review or audit occur.

Why Choose AVS Lewis & Pecker Auditing for Corporate Tax Support?

In-depth knowledge of UAE Corporate Tax Law
Expertise in transfer pricing and international tax advisory
Custom corporate tax strategies tailored to your industry
End-to-end compliance services with FTA representation
Trusted by SMEs, multinationals, and free zone entities alike

Get Corporate Tax Ready — The Right Way

Whether you’re a new business or an established group, AVS Lewis & Pecker Auditing ensures you’re fully compliant, audit-ready, and strategically positioned under the UAE Corporate Tax framework.