Corporation tax UAE

Corporate tax is a form of direct tax levied on the net income or profit of corporations and other entities from their business.

Businesses will become subject to UAE Corporate Tax from the beginning of their first financial year that starts on or after 1 June 2023.

Corporation Tax in UAE will apply to:

  1. all businesses and individuals conducting business activities under a commercial licence in the UAE
  2. free zone businesses (The UAE CT regime will continue to honour the CT incentives currently being offered to free zone businesses that comply with all regulatory requirements and that do not conduct business set up in the UAE's mainland.)
  3. Foreign entities and individuals only if they conduct a trade or business in the UAE in an ongoing or regular manner
  4. Banking operations
  5. Businesses engaged in real estate management, construction, development, agency and brokerage activities.

Contact by whatsapp 05052744200 for corporation tax registration.

UAE Corporation Tax Compliance: Expert Guidance | Barakah Al Meezan

Barakah Al Meezan

UAE Corporation Tax Compliance: Stay on the Right Side of the Law

Navigating the complexities of UAE Corporation Tax (CT) can be challenging. Our team of experienced tax professionals provides comprehensive compliance services to help your business meet its obligations efficiently and effectively.

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What is UAE Corporation Tax?

The UAE introduced Corporation Tax effective for financial years starting on or after June 1, 2023. It applies to most businesses operating in the UAE, with a standard rate of 9% on taxable profits exceeding AED 375,000. Understanding the scope of CT and its implications is crucial for your business.

You can find the official information on the Federal Tax Authority (FTA) website: FTA Website

Who is Subject to UAE Corporation Tax?

Generally, all companies and other juridical persons conducting business in the UAE are subject to CT. This includes:

Specific rules and exemptions apply, particularly for:

It's vital to determine your specific obligations based on your business activities and structure. Contact us for a personalized assessment.

Our UAE Corporation Tax Compliance Services

We offer a comprehensive suite of services to ensure your business remains compliant with UAE CT regulations:

Calculating Your UAE Corporation Tax

Calculating your Corporation Tax liability involves several steps, including determining your taxable income and applying the appropriate tax rate. The formula is generally:

Taxable Income = Accounting Income - Deductions + Adjustments

Corporation Tax = Taxable Income x Applicable Tax Rate (usually 9%)

However, accurately calculating this can be complex due to various allowable deductions and adjustments. We can help you navigate these complexities.

Benefits of Choosing Barakah Al Meezan for CT Compliance

Frequently Asked Questions (FAQ) about UAE Corporation Tax Compliance

What is the deadline for filing UAE Corporation Tax returns?

The deadline for filing CT returns is generally nine months from the end of the relevant financial year. However, it's best to confirm the exact dates on the FTA website.

What are the penalties for non-compliance with UAE Corporation Tax?

Penalties for non-compliance can include fines, interest charges, and other sanctions. It's important to stay compliant to avoid these penalties.

What is the Corporation Tax rate in UAE?

The standard Corporation Tax rate is 9% on taxable income exceeding AED 375,000.

Need Help with UAE Corporation Tax Compliance?

Contact us today for a free consultation. Our team is ready to help you navigate the complexities of CT and ensure your business remains compliant.

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