In 2023, the UAE introduced a corporate tax system that reshaped its economic landscape. Once celebrated as a tax haven, the UAE now aligns with international tax standards to enhance transparency and foster long-term growth. This shift offers new opportunities—and responsibilities—for entrepreneurs and companies operating within the country.
Let’s explore how UAE corporate tax affects your business and how you can turn compliance into a competitive edge.
Corporate tax is a direct tax on a company’s net profits—the amount left after deducting operating expenses. In simple terms, it’s the share of your business earnings that goes to the government.
Implemented in June 2023, corporate tax in UAE 2023 aims to support public services while encouraging responsible financial reporting and international alignment.
The UAE offers a straightforward and business-friendly tax structure, consisting of two primary tiers:
If your business earns AED 500,000 in taxable income:
The first AED 375,000 is taxed at 0%
The remaining AED 125,000 is taxed at 9%
Total tax = AED 11,250
This simple tiered system ensures small businesses aren’t burdened while encouraging compliance from larger firms.
Corporate tax applies to various entities, including:
Mainland Companies: Registered and operating within the UAE.
Only if they earn UAE-sourced income or have a permanent establishment in the country.
Individuals conducting business activities under a commercial license may also be liable.
Entities in UAE Free Zones can still benefit from a 0% corporate tax rate—but only if they qualify as “Qualifying Free Zone Persons.”
Free Zones continue to provide attractive tax incentives, making them a strategic choice for international and local businesses.
Certain organizations are fully exempt from corporate tax:
These exemptions ensure that public welfare and essential services remain unaffected by the new tax framework.
All taxable persons—regardless of whether they meet the AED 375,000 income threshold—must register for corporate tax with the Federal Tax Authority (FTA).
At Theta 7, we offer professional corporate tax registration services at a competitive fee. We handle the entire process on your behalf—ensuring it's done accurately, efficiently, and on time.
Whether you're a small business or a multinational firm, Theta 7 simplifies the process so you can stay compliant with minimal stress.
Registered entities are required to file an annual corporate tax return and pay any tax due within 9 months from the end of their financial year.
If your financial year ends on December 31, your return and payment are due by September 30 of the following year.
Prepare audited or reviewed financial statements
Ensure transfer pricing documentation is ready, if applicable
Review income, deductions, and exemptions accurately
File the return via the FTA’s eServices platform
Late filings or payments can incur penalties, so it's important to stay on top of deadlines.
At Theta 7 Accountants, we offer comprehensive accounting and auditing services to support your corporate tax obligations. Our services include:
Preparation of Financial Statements: Ensuring accuracy and compliance with UAE regulations.
Tax Return Filing: Managing the entire filing process through the FTA’s eServices platform.
Registered Auditing Services: As registered auditors in the UAE, we conduct statutory external audits to meet regulatory requirements.
Ongoing Accounting Support: Providing continuous support to keep your financial records in order.
Our team is dedicated to helping your business navigate the complexities of corporate taxation in the UAE. Contact us today to learn more about how we can assist you.
Navigating the UAE’s corporate tax landscape doesn’t have to be overwhelming. Whether you need help with corporate tax registration, filing returns, auditing, or full-scale accounting support, Theta 7 Accountants has you covered.
With our expert team, tailored solutions, and FTA-compliant services, we simplify the process—so you can focus on growing your business.
👉 Contact us today to schedule a consultation and ensure your business is fully compliant, tax-efficient, and audit-ready.
🔗 Visit our website | 📞 +971506098543| ✉️ support@theta7.ae
Your success is our business. Let’s make tax work for you.