Corporate tax
With Corporate Tax now effective in the UAE, you may be wondering what it actually is! Ultimately, this new tax law’s main purpose is to build the country’s economy and to stop illegal tax practices. At Foster Chapman, we're dedicated to raising our businesses to the same level as their international competitors, which includes helping them to understand the ins and outs of Corporate Tax.
Corporate tax launch dates
Corporate tax rates in UAE
Corporate Tax Rates in UAE
- Taxable income up to AED 375,000: 0% tax rate
- Taxable income over AED 375,000: 9% tax rate
- Multinational Corporations subject to Profit-Sharing laws and OECD Base Erosion: 15%
Any of your taxable income below or up to AED 375,000 is not subjected to Corporate Tax. It is only the money exceeding this limit that will be taxed at 9%.
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Who does the Corporate Tax impact?
The new Corporate Tax in the UAE will affect:
– All businesses under a commercial license in the UAE
– Free Zone businesses
– Foreign companies who regularly conduct business in UAE
– Banking Sector Operations
– Any Taxable persons
If you are impacted, remember to file a Corporate Tax return every tax period, as fines and penalties are now being implemented.
Who isn’t impacted by Corporate Tax?
Those who will not be affected include:
– Any businesses who extract natural resources
– The Dividends and Capital gains from qualifying shareholdings
– Public or Private sector salaries
– Transactions for Intra-groups
– The interest from savings or bank deposits
Related Services
Corporate tax services
We are here to guide you through the whole process, from registration to return filing, so that you are fully prepared to comply with the new regulations.
Corporate tax registration
Foster Chapman offers top-notch Corporate Tax services, ensuring professional and timely CT registration in the UAE, in compliance with the new UAE CT regime.
Corporate tax assessment
At Foster Chapman, we offer expert corporate tax impact assessment services in the UAE, ensuring businesses remain compliant with tax regulations.
Corporate tax audits
An audit is a mandatory process to assess a company’s tax liability, compliance and financial records. During the audit, an auditor examines all of your financial statements, tax returns and any other related documents.
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