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Corporate Tax

Trusted UAE tax experts handling registration, filings, exemptions, and compliance for startups, SMEs, and multinationals.

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About Setupzo – Who We Are

Setupzo is a leading business consultancy in Dubai, UAE, providing end-to-end solutions for company formation, business setup, and corporate support services. With expertise in UAE regulations and compliance, we specialize in simplifying complex processes such as payroll management, licensing, and business administration.
Our mission is to empower entrepreneurs, SMEs, and enterprises with reliable, transparent, scalable services that ensure compliance while supporting long term growth.

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Corporate Tax in UAE

Understanding corporate tax UAE is vital for businesses operating in today's competitive environment. Knowing the CT percentage, exemptions, and registration process is crucial to avoid penalties, whether you are a startup, SME, or multinational. With new rules, deadlines, and compliance requirements introduced under the Corporate Tax Law UAE, many companies seek expert support.
At Setupzo, we provide business owners, entrepreneurs, and investors with clear guidance on corporate Tax in UAE, covering eligibility, exemptions, rates, and registration deadlines. Our goal is to simplify CT compliance so you can focus on growing your business in Dubai and across the UAE. We ensure you meet deadlines and maximize benefits under the new CT Law UAE.

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What is Corporate Tax in UAE?

Corporate Tax in UAE is a federal tax imposed on businesses' net profits. The UAE introduced Corporate Tax on 1 June 2023 at 9% on profits above AED 375,000. Introduced through Federal Decree Law No. 47 of 2022 on the Taxation of Corporations and Businesses, it represents a major shift in the country's economic framework. The law aligns the UAE with international tax standards while maintaining a competitive tax environment.
CT in the UAE is designed to support the country's diversification strategy, provide sustainable revenue, and ensure compliance with global transparency initiatives. While the UAE continues to be attractive for entrepreneurs and investors, businesses must now adapt to this new tax rule.

Corporate Tax UAE Law & Effective Date

This law became effective on 1 June 2023. Businesses with financial years starting on or after this date are subject to CT. For companies that follow a calendar year (January to December), the CT applies from 1 January 2024.
This amazing approach gives businesses time to prepare, understand compliance requirements, and register with the Federal Tax Authority (FTA).

Corporate Tax UAE Eligibility

Corporate Tax (CT) applies to a wide range of entities operating in the UAE. Most established businesses must register and comply, depending on their legal structure, activities, and revenue thresholds.

Juridical Persons

Companies incorporated in the UAE, including mainland and free zone entities.

Foreign Entities

Businesses that have a permanent establishment or taxable presence in the UAE.

Natural Persons

Individuals conducting business activities with annual revenue exceeding AED 1 million.

This means most established businesses must register and comply with UAE Corporate Tax. Eligibility depends on the nature of the business, structure, and income levels.

Corporate Tax UAE Exemption

Not all businesses are required to pay CT. Exemptions include:
• Government entities and government-controlled companies
• Extractive industries (oil & gas) are subject to specific local taxation.
• Qualifying intra-group transactions that meet legal conditions.
• Dividends and capital gains from qualifying shareholdings.
• Qualifying Free Zone Persons, provided they meet the conditions to benefit from the 0% rate on qualifying income.
These exemptions maintain the UAE's competitiveness while ensuring specific sectors remain tax advantaged.

Corporate Tax Percentage & Rate in UAE

The UAE corporate tax rate is competitive and straightforward:
• 0% on taxable income up to AED 375,000 (to support SMEs).
• 9% on taxable income above AED 375,000.
• According to OECD Pillar Two rules, a 15% minimum top-up Tax may apply to large multinational enterprises with consolidated global revenues above €750 million.
This structure keeps the UAE among the lowest CT jurisdictions globally.

CT UAE Registration & Deadline

All businesses within scope must register with the Federal Tax Authority (FTA) via the Setupzo. Registration deadlines depend on the date of trade license issuance:
• Existing companies (before 1 March 2024): As specified by the FTA, registration timelines are based on the month of incorporation.
• New companies (after 1 March 2024): Registration must be completed within three months of incorporation or becoming taxable.
Failure to register on time leads to penalties.
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CT UAE Last Date for Filing & Payment

CT returns must be filed within nine months from the end of the financial year. Payment of any CT due must also be completed within this timeline. For example:
• Financial year ending 31 December 2024 → Return due by 30 September 2025.
Businesses should prepare early to avoid last-minute errors or penalties.

Benefits & Challenges of UAE CT

Benefits:
• International credibility and alignment with global standards.
• Competitive rates compared to other jurisdictions.
• Supports SMEs with a 0% threshold.
Challenges:
• Increased compliance and reporting requirements.
• Need for proper accounting and documentation.
• Strategic tax planning is required, especially for free zones and multinationals.

How to Calculate CT in UAE

The calculation is straightforward:
1. Start with net profit as per the financial statements.
2. Adjust for non-deductible expenses and exempt income.
3. Deduct the AED 375,000 threshold.
4. Apply the 9% rate to the remaining taxable income.
Example:
• Net profit = AED 500,
• Tax free threshold = AED 375,000
• Taxable = AED 125,000 × 9% = AED 11,250 CT.

Penalties, Waivers & Late Registration

The FTA imposes strict penalties for non-compliance:
• AED 10,000 fine for late registration.
• Penalties for late filing or late payment.
However, a waiver program exists for businesses that submit their first tax return within seven months of the end of their first tax period. This encourages compliance and provides relief for early filers.

Free Zones & Qualifying Free Zone Persons

Free zones remain a cornerstone of the UAE's business strategy. Under CT rules:
• Qualifying Free Zone Persons may enjoy a 0% tax rate on qualifying income.
• Non-qualifying income (e.g., mainland transactions) is subject to the 9% CT
Maintaining eligibility requires meeting strict substance and compliance conditions. Businesses in free zones must review their activities carefully. Book a Free Consultation Today

Why Choose Setupzo for CT in UAE?

At Setupzo, we provide end-to-end Corporate Tax support, ensuring compliance, accuracy, and strategic tax efficiency for your business.

CT Registration with FTA

Quick and hassle-free Corporate Tax registration with the Federal Tax Authority.

CT Return Filing & Compliance

Accurate return filing with timely submissions to avoid penalties.

Exemptions & Free Zone Advisory

Maximize benefits under UAE free zone and 0% Corporate Tax regulations.

Penalty Waiver Assistance

Expert guidance to minimize or avoid fines and late submission penalties.

Trusted Expertise

Dedicated UAE Corporate Tax specialists supporting your business.

With Setupzo, your Corporate Tax compliance is handled professionally, allowing you to focus on growing your business with confidence.

Large Multinationals & Minimum Top-Up Tax

From 1 January 2025, the UAE will apply a 15% domestic minimum top-up tax for large multinational enterprises with global revenues exceeding €750 million. This aligns with global tax reforms under OECD Pillar Two and ensures the UAE complies with international standards.

How Setupzo Can Help You

At Setupzo, we simplify CT compliance for businesses across Dubai and the UAE. Our services include:

  • CT registration via the FTA portal.
  • Support with tax calculation, filing, and deadlines.
  • Support with tax calculation, filing, and deadlines.
  • Strategic planning for free zones and multinational companies.

Whether you are a startup, SME, or multinational, we ensure smooth compliance so you can focus on growth. Contact us today to register for the UAE CT and avoid penalties.

Frequently Asked Questions (FAQs)

VAT is a consumption tax added to services and goods, paid by consumers but collected by businesses on behalf of the government. Conversely, CT is levied directly on a business's net profits after deducting allowable expenses.

Businesses must file CT returns online through the FTA's EmaraTax portal. The return must be submitted within 9 months from the end of the financial year. You'll need audited financial statements, taxable income calculations, and supporting documents.

You can register for UAE CT through Setupzo. Companies incorporated before 1 March 2024 must follow FTA's specified timelines. New businesses must register within 3 months of incorporation or becoming taxable.

CT is calculated on net taxable profit:
1. Start with your accounting net profit.
2. Adjust for non-deductible expenses and exempt income.
3. Apply the 0% rate on the first AED 375,000.
4. Apply 9% to the remaining profit.
Example: AED 500,000 profit → 0% on 375,000 + 9% on 125,000 = AED 11,250 tax.

All UAE companies, free zone entities, and foreign companies with a permanent establishment must register. In addition, individuals conducting business activities with annual revenue above AED 1 million are also required to register.

Corporate tax registration is the mandatory process of enrolling your business with the Federal Tax Authority to obtain a Corporate Tax Registration Number (TRN). This ensures your business can file returns, pay taxes, and comply with the CT Law UAE.

Government entities, qualifying free zone income, dividends, and qualifying intra-group transactions.

Tax returns must be filed within nine months after the end of the tax period.

Yes, but qualifying free zone persons can enjoy a 0% rate on qualifying income, provided conditions are met.
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