LMKG Chartered Accountants

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Corporate Tax in UAE

The introduction of Corporate Tax (CT) in the UAE has reshaped the financial environment for businesses across the nation, including major hubs like Dubai and Abu Dhabi. Announced by the UAE Ministry of Finance and effective for financial years starting on or after June 1, 2023, this direct tax on corporate net income represents a significant step towards aligning the UAE with global tax standards while maintaining one of the most competitive tax rates worldwide. At LMKG, we are dedicated to helping businesses navigate these changes, ensuring compliance, and maximizing tax efficiency.

The Federal Corporate Tax Law, formalized through Federal Decree-Law No. (47) of 2022, applies to all corporate entities and business activities throughout the UAE, including free zones and mainland businesses.

Understanding Corporate Tax in UAE

This new tax regime, set at a competitive 9% rate on non-qualifying income, aims to bolster the UAE’s fiscal system while maintaining a business-friendly environment. With an expert team of corporate tax consultants in Dubai, LMKG is ready to support businesses with tailored tax solutions.

Explore our Corporate Tax Services in UAE

Corporate Tax in Dubai and across the UAE applies to nearly all business and commercial activities, with some notable exemptions designed to support specific sectors:

  • Automatically Exempt: Government entities and certain government-controlled entities.
  • Conditional Exemptions: Extractive and non-extractive natural resource businesses under Emirate-level taxation, qualifying public benefit entities, pension and social security funds, and qualifying investment funds, provided they meet specified conditions.
  • Special Income Exemptions: Dividends, capital gains from qualifying shareholdings, qualifying intra-group transactions, and certain income earned by individuals from personal investments, real estate, and securities.

The Federal Corporate Tax Law, formalized through Federal Decree-Law No. (47) of 2022, applies to all corporate entities and business activities throughout the UAE, including free zones and mainland businesses. This new tax regime, set at a competitive 9% rate on non-qualifying income, aims to bolster the UAE’s fiscal system while maintaining a business-friendly environment. With an expert team of corporate tax consultants in Dubai, LMKG is ready to support businesses with tailored tax solutions.

Compliance and Filing Requirements

Businesses operating in the UAE are required to file their corporate tax returns electronically within nine months from the end of their financial year. The introduction of CT does not necessitate advance tax payments, and UAE group companies can opt to file a single consolidated return, simplifying the compliance process.

How LMKG Can Assist You

LMKG’s comprehensive Corporate Tax services in UAE are designed to help businesses not only comply with new regulations but also leverage opportunities for growth and optimization. Our team of dedicated corporate tax consultants in Dubai and Abu Dhabi brings in-depth knowledge and a proactive approach to managing your tax obligations.

  1. Strategic Tax Planning and Impact Assessment

    • Qualitative Analysis: Evaluate the impact of UAE Corporate Tax and Transfer Pricing regulations on your business operations.
    • Financial Assessment: Analyze the potential financial implications of the new tax on your business.
    • Opportunity Identification: Highlight areas for restructuring and optimization to enhance tax efficiency.

  2. Tailored Implementation Solutions

    • Contract and Policy Adjustments: Revise contracts and develop tailored transfer pricing policies that align with UAE Corporate Tax regulations.
    • Organizational Restructuring: Implement necessary structural adjustments to comply with new tax rules.
    • Tax Clarifications and Rulings: Obtain required clarifications and rulings from the Federal Tax Authority (FTA) to ensure accurate compliance.

  3. Ongoing Compliance and Support

    • CT Registration: Navigate the registration process smoothly with our expert guidance.
    • Tax Returns and Documentation: Prepare and file accurate corporate tax returns and transfer pricing documentation.
    • Continuous Advisory: Receive ongoing support and updates on regulatory changes to keep your business compliant.