UAE Corporate Tax Compliance
UAE Corporate Tax Compliance
Corporate tax is a type of direct tax imposed on the net income or profit of businesses and corporations. It is calculated based on the accounting net profit after applying allowable adjustments as defined by tax regulations.
On January 31, 2022, the UAE Ministry of Finance announced the introduction of a federal corporate tax, effective for financial years beginning on or after June 1, 2023.
Applicable Tax Rates
Corporate tax in the UAE is applied progressively, based on taxable income as follows:
| Taxable Income | Tax Rate |
|---|---|
| AED 0 – AED 375,000 | 0% |
| Above AED 375,000 | 9% |
Illustrative Calculation
Assume a Company earns a Taxable Profit of AED 400,000 in a financial year. The corporate tax would be calculated as follows:
- AED 0 – AED 375,000 at 0% = AED 0
- AED 25,000 (amount above AED 375,000) at 9% = AED 2,250
How we add Value
At KloVr, we provide comprehensive Corporate Tax solutions to help businesses in the UAE comply with Federal Tax Authority (FTA) regulations and optimize their tax position. Our services include:
- Corporate Tax Registration – Assistance with timely registration on the EmaraTax portal and obtaining the Corporate Tax Registration Number (TRN).
- Corporate Tax Return Preparation & Filing – Accurate computation of taxable income, preparation of returns, and filing within the prescribed deadlines.
- Corporate Tax Compliance Review – Periodic assessment of tax records, accounting systems, and compliance with UAE Corporate Tax Law and FTA guidelines.
- Free Zone & Qualifying Income Advisory – Evaluation of eligibility for 0% tax rate under the Qualifying Free Zone Person (QFZP) regime and related documentation support.
- Corporate Tax Impact Assessment – Detailed analysis of how Corporate Tax applies to your business model and financials, with tailored recommendations.
- Corporate Tax Health Check – Review of your current financial and accounting systems to ensure readiness and identify compliance gaps.
- FTA Audit Support – End-to-end assistance during FTA reviews or audits, including response preparation and representation.
- Corporate Tax Training & Workshops – Custom sessions for finance teams on UAE Corporate Tax rules, record-keeping, and reporting requirements.