Corporate Tax Services
Corporate Tax in UAE - What Businesses Need to Know
The United Arab Emirates has long been known for its tax-friendly economy and investor confidence. However, with the introduction of the Corporate Tax in UAE in June 2023, the country entered a new era of transparency and global compliance. This change affects all mainland and free zone businesses, emphasizing accurate reporting and registration.
Navigate UAE Corporate Tax with Confidence
Compliance. Strategy. Audit Readiness.
The UAE Corporate Tax regime introduced under Federal Decree-Law No. (47) of 2022
(as amended, including Federal Decree-Law No. (28) of 2025) has significantly increased
tax compliance expectations for businesses operating in the UAE.
At Crestbourne Accounting and Tax Consultancy, we help businesses implement a structured Corporate Tax approach — ensuring compliance, reducing risk, and staying audit-ready.
Key Features of the UAE Corporate Tax Law
Corporate Tax is a Direct Tax
Corporate Tax applies on taxable income of businesses operating in the UAE.
Taxable Income Adjustments
Taxable income starts from accounting profit/loss and is adjusted for: inclusions/exclusions, exemptions/reliefs, and deductible/non-deductible expenses.
International Standards Built In
- Transfer Pricing (Arm’s Length Principle)
- Anti-avoidance provisions
- Economic substance focus
Who is Subject to Corporate Tax?
| Category | Who falls under it? | Tax scope |
|---|---|---|
| Resident Persons | UAE incorporated companies (including Free Zone), individuals conducting business, foreign companies effectively managed & controlled in UAE (POEM). | Worldwide income (subject to exemptions) |
| Non-Resident Persons | Foreign persons with UAE PE / UAE-sourced income / Nexus (e.g. UAE property income). | UAE-related income only |
Corporate Tax Rates in UAE
| Tax Rate | Applicable To |
|---|---|
| 0% | Qualifying income of Qualifying Free Zone Persons (QFZPs) (subject to conditions) |
| 9% | Taxable income exceeding AED 375,000 |
| 0% (SBR) | Eligible businesses electing Small Business Relief (subject to conditions) |
Qualifying Free Zone Applicability (QFZP)
Free Zone entities may benefit from the 0% Corporate Tax rate, provided they comply with all qualifying conditions:
- Maintain adequate substance and economic presence in the UAE
- Earn qualifying income as defined by the law
- Maintain audited financial statements
- Comply with transfer pricing and arm’s length rules
- Has not elected to be subject to the standard Corporate Tax regime
- Meet all conditions specified by the Ministry of Finance and FTA
Key Compliance Considerations for Businesses
Applicability Review
Evaluate how Corporate Tax applies to your operations, legal structure and revenue streams.
QFZP Eligibility
Determine QFZP eligibility and assess tax impact including the risk of loss of QFZP benefits.
Filing & Documentation
Prepare for filing requirements, supporting schedules and audit-ready documentation.
Transfer Pricing
Implement transfer pricing policies where related party transactions exist.
OECD BEPS Pillar Two - UAE Implementation
The UAE has introduced the Domestic Minimum Top-Up Tax (DMTT) under Cabinet Decision No. 142 of 2024, aligned with OECD Pillar Two.
Who is impacted?
Multinational groups with consolidated global revenue of €750 million+.
Key impact
Minimum effective tax rate (ETR) of 15%. UAE collects top-up tax locally where applicable.
Our Corporate Tax Services: What We Do
- In-scope entities and exempt entities
- Review of inter-company pricing and policies
- Identification of potential uncertain tax positions
- Transfer Pricing risk areas and documentation requirements
- Compliance gaps and actionable recommendations
- Corporate Tax registration (entity / tax group)
- Implementation of Corporate Tax and Transfer Pricing policies
- Review of accounting/ERP readiness for Corporate Tax compliance
- Corporate Tax computations and schedules
- Preparation and filing of Corporate Tax returns with the FTA
- Transfer Pricing documentation support (where applicable)
Our Approach
We combine technical expertise with practical business insight to deliver Corporate Tax solutions that are compliant, defensible, and efficient.
What Makes Us Unique
Compliant. Strategic. Efficient.
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Get expert guidance on tax registration, filing, and compliance from Crest Bourne Advisory.
