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Corporate tax services and UAE CT compliance in Dubai
Corporate Tax

Corporate Tax Services in Dubai

Navigate UAE corporate tax with expert guidance. Registration, planning, filing, and full compliance support.

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The UAE introduced Corporate Tax (CT) at a headline rate of 9% on taxable income above AED 375,000, effective for financial years starting on or after 1 June 2023. This landmark change brought the UAE into alignment with global tax standards while preserving significant incentives for businesses, including a 0% rate on the first AED 375,000 of taxable income, a 0% rate for qualifying income earned by eligible free zone entities, and Small Business Relief for companies with revenue below AED 3 million. Every UAE business entity — whether on the mainland or in a free zone — must register for corporate tax with the Federal Tax Authority, and must file an annual corporate tax return within 9 months of the end of each tax period. Non-compliance attracts significant penalties. Our corporate tax services for Dubai companies cover the full compliance and advisory spectrum: CT registration, tax position assessment, QFZP analysis, return preparation and filing, transfer pricing, and ongoing strategic advisory. For VAT compliance, see our VAT registration service. For bookkeeping and financial reporting to underpin your CT return, see our accounting services. For statutory audit obligations, see our audit services. Contact us to get started.

Our Corporate Tax Service Process

1

CT Registration

We register your company with the FTA for corporate tax within the required deadlines, obtaining your Corporate Tax Registration Number and ensuring your tax profile is correctly configured — including financial year dates, accounting basis, and applicable regime.

2

Tax Position Assessment

We conduct a comprehensive review of your corporate structure, income streams, related party transactions, and free zone status to determine your CT exposure, assess QFZP eligibility, identify Small Business Relief applicability, and map all transfer pricing obligations.

3

Accounting Alignment

We review your financial statements to ensure they are IFRS-compliant and correctly prepared for use as the starting point of your CT computation. We identify any accounting adjustments required and coordinate with your accountant or bookkeeper.

4

Transfer Pricing Documentation

Where your business has significant related party transactions, we prepare the required transfer pricing documentation — benchmarking studies, intercompany agreements, and Local File — to support arm's length pricing and protect against FTA challenge.

5

CT Return Preparation and Review

We prepare your annual corporate tax return with full workings, including the taxable income computation with all adjustments, supporting schedules, and any required elections. We review the return with you before filing.

6

Filing and Ongoing Advisory

We file the completed return on the FTA portal within the 9-month deadline and pay any corporate tax due. We provide ongoing advisory throughout the year on new FTA guidance, regulatory changes, and any CT implications of proposed business transactions.

Key Corporate Tax Facts and Requirements

  • 9% corporate tax rate on taxable income above AED 375,000
  • 0% rate on taxable income up to AED 375,000
  • 0% rate on qualifying income for eligible Qualifying Free Zone Persons
  • Small Business Relief available for revenue below AED 3 million
  • Mandatory registration for all UAE business entities
  • Annual CT return filing required within 9 months of tax period end
  • Transfer pricing rules apply to all related party transactions
  • IFRS financial statements required as the basis for CT computations
  • CT registration penalty: AED 10,000 per failure to register

Indicative Corporate Tax Service Costs

Fees are indicative and depend on the complexity of your corporate structure, number of entities, related party transactions, and free zone status. Fixed fees are agreed in advance for each engagement.
Item Cost
CT registration (one-off per entity) from AED 1,500
Simple CT return (Small Business Relief election) typically AED 2,000–4,000
Standard CT return (no QFZP or TP complexity) typically AED 4,000–8,000
CT return with QFZP analysis typically AED 6,000–12,000
Transfer pricing documentation (Local File) from AED 8,000 depending on transaction complexity
CT advisory / position paper from AED 5,000 depending on scope

Frequently asked questions

Does every UAE company need to register for corporate tax?
Yes. All UAE business entities must register for corporate tax with the FTA, regardless of their income level, profitability, or eligibility for exemptions or reliefs. This includes free zone companies that expect to pay 0% tax as QFZPs, and companies that will elect for Small Business Relief. The penalty for failure to register is AED 10,000.

Do free zone companies pay corporate tax?
Free zone entities that qualify as Qualifying Free Zone Persons (QFZPs) and earn qualifying income benefit from a 0% corporate tax rate on that qualifying income. However, they must still register, file annual returns, maintain adequate UAE substance, and meet all other QFZP conditions. Income that does not meet the qualifying income criteria is subject to the standard 9% rate. QFZP status must be assessed case by case.

When is the corporate tax return due?
Corporate tax returns must be filed within 9 months of the end of the relevant tax period. For a financial year ending 31 December 2024, the return is due by 30 September 2025. Any corporate tax due must also be paid by this deadline. Late filing and late payment both attract FTA penalties.

How is taxable income calculated?
Taxable income starts with accounting profit per your IFRS financial statements and is then adjusted for: non-deductible expenses (fines and penalties, entertainment above the 50% threshold, interest subject to the EBITDA limitation, transactions with related parties not priced at arm's length); exempt income (qualifying dividends, qualifying capital gains); and any elections such as Small Business Relief. The resulting figure, above AED 375,000, is taxed at 9%.

What is Small Business Relief?
Small Business Relief is available to UAE-resident businesses with annual revenue not exceeding AED 3 million. Eligible businesses that elect for relief are treated as having zero taxable income for the relevant period. The relief must be elected in the CT return and is available for tax periods ending on or before 31 December 2026. It is not available to members of multinational enterprise groups or to free zone entities that are QFZPs.

What are transfer pricing obligations?
All transactions between related parties (connected persons) must be conducted on arm's length terms. Businesses must maintain adequate documentation to demonstrate compliance if queried by the FTA. For businesses with significant intercompany transactions — loans, management fees, royalties, goods supplied between group entities — formal transfer pricing documentation (Local File, and potentially Master File) may be required. We assess your related party transactions and prepare the required documentation.

Do I need audited accounts for corporate tax?
Audited financial statements are not universally mandated by the CT Law for all entities, but they provide the strongest evidentiary basis for your tax return. Free zone entities claiming QFZP status in particular benefit from having audited accounts. The FTA may request supporting documentation for any CT return, and audited accounts significantly reduce the risk of queries or adjustments. See our audit services for details.

How does corporate tax relate to VAT?
Corporate tax and VAT are entirely separate obligations, both administered by the FTA. VAT applies to the value of taxable supplies; corporate tax applies to profits. However, the quality of your VAT records has a direct impact on the quality of your corporate tax records — both depend on accurate, complete bookkeeping. Our accounting team coordinates both compliance streams to ensure consistency and efficiency.

What is the UAE excise tax rate on energy drinks and tobacco?
Energy drinks and tobacco products are both subject to a 100% excise tax rate in the UAE. Carbonated soft drinks and sweetened beverages are subject to a 50% rate. Electronic cigarettes and vaping devices, including the liquids used in them, are also taxed at 100%. Excise tax is levied at the point of import or local production and is ultimately passed to the end consumer.

When does a foreign company create a permanent establishment in the UAE?
A foreign company can create a UAE permanent establishment in several ways: by maintaining a fixed place of business in the UAE for more than 6 months (such as an office, construction site, or service delivery location); by having an agent who habitually concludes contracts on its behalf in the UAE; or by providing services in the UAE for more than 183 days in any 12-month period. If a PE exists, the foreign company must register for UAE corporate tax and file a CT return on the profits attributable to the PE.

What are the penalties for missing the corporate tax registration deadline?
The FTA imposes an administrative penalty of AED 10,000 for each failure to register for corporate tax within the required deadline. This applies regardless of whether the company will ultimately owe any tax. All UAE business entities must register — including those eligible for Small Business Relief, QFZP-status free zone companies, and entities that expect zero taxable income.

What is the de minimis rule for free zone companies?
The de minimis rule for Qualifying Free Zone Persons (QFZPs) states that non-qualifying revenue must not exceed the lower of AED 5 million or 5% of total revenue in any given tax period. If a free zone entity's non-qualifying income exceeds this de minimis threshold, it loses QFZP status for that tax period and all its income becomes subject to the standard 9% corporate tax rate. Careful monitoring of non-qualifying income throughout the year is therefore essential for free zone entities seeking to maintain QFZP status.

Can I form a tax group with my Dubai subsidiaries?
Yes. The UAE CT Law permits the formation of a tax group where a parent company owns at least 95% of the shares and voting rights of each subsidiary, and all entities share the same financial year and accounting standards. The main benefits are group loss relief (losses in one entity offset profits in another), simplified treatment of intra-group asset transfers, and consolidated return filing. We advise on the optimal structure for tax group formation based on your corporate setup.
The information on this website is for general guidance only and does not constitute professional advice. Regulations in the UAE may change. Please contact us or consult a licensed professional for specific advice tailored to your situation.