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Corporate Tax in the UAE

Starting June 1, 2023, the United Arab Emirates introduced a federal corporate tax at a rate of 9%. This is a fundamental change in the country's tax system, requiring businesses to prepare, adapt, and strictly comply with the law. MIRAD provides a full range of services for corporate tax support: from registration to filing declarations and optimizing tax burdens.

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Who is subject to corporate taxation?

  1. All legal entities registered in the UAE (Mainland and Free Zone companies).
  2. Foreign legal entities with a permanent establishment in the UAE.
  3. Individual entrepreneurs and freelancers with an income of over 1 million AED per year.

What is subject to corporate tax?

Taxation applies to net profit based on financial statements according to IFRS standards.

Taking into account adjustments, including:

  • unrealized profits and losses;
  • exempt income (dividends, capital gains);
  • non-deductible expenses;
  • transactions with affiliated parties;
  • transfer pricing rules;
  • loss carryforwards and tax credits.

What benefits are provided?

  • Small Business Relief — exemption for companies with a turnover of up to 3 million AED per year.
  • Free Zone Benefits — 0% rate for qualifying income under certain conditions (only for specific Free Zones).
  • Group registration and consolidation — the ability to account for losses within a group of companies.

HowTo: Corporate Tax Procedure in the UAE

  1. Determine if the company's income exceeds the threshold of 1 million AED.
  2. Prepare financial statements in accordance with IFRS.
  3. Identify exempt income and deductible expenses.
  4. Register with the Federal Tax Authority (FTA) and obtain a TRN (Tax Registration Number).
  5. Record all transactions with affiliated parties.
  6. Apply transfer pricing rules and prepare documentation.
  7. Annually file a Corporate Tax declaration through the FTA portal.
  8. Keep financial and tax documentation for at least 7 years.
Corporate Tax with MIRAD

We help companies register, structure income, maintain IFRS accounting, and file declarations on time — with protection from risks and penalties.

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What MIRAD does for you

  • Company registration with the FTA and obtaining a TRN.
  • Structuring income and expenses according to legal requirements.
  • Accounting and reporting based on IFRS.
  • Calculation of the taxable base and benefits.
  • Preparation and submission of tax declarations.
  • Transfer pricing documentation.
  • Full support during FTA audits and inquiries.
  • Tax risk assessment and optimization recommendations.

Why choose MIRAD

  • We work according to IFRS — reports are ready for submission and audit.
  • Knowledge of the UAE tax and legal framework.
  • 10+ years of experience with companies of various industries and scales.
  • Deep expertise in transfer pricing and compliance.
  • We help not only with reporting but also with reducing tax burdens.
  • Support in both Russian and English languages.

FAQ: Corporate Tax in the UAE

❓ What is the corporate tax rate in the UAE?
✅ 9% on profits over 375,000 AED. No tax is levied below this amount.

❓ Are companies in Free Zones taxed?
✅ Yes, but a preferential rate of 0% may apply to qualifying income under certain conditions.

❓ How often is the Corporate Tax declaration filed?
✅ Once a year, within the deadlines set by the FTA.

❓ Do freelancers need to pay tax?
✅ Yes, if their income exceeds 1 million AED per year.

❓ What are the penalties for non-compliance?
✅ From 10,000 to 500,000 AED, as well as possible license and bank account suspension.

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